- VELO forms a Hidden Bullish Divergence with higher lows in price and lower lows in RSI, hinting at a strong continuation trend.
- With major support holding near $0.050 and resistance at $0.075, VELO could rally 180% if bullish momentum sustains above trendline.
- The rounded bottom pattern and increasing trading volume confirm renewed market strength and growing buyer confidence in VELO.
VELO Protocol is showing strong recovery potential after forming a key technical signal known as a Hidden Bullish Divergence. This pattern occurs when prices form higher lows while the RSI forms lower lows. The divergence suggests the prior uptrend remains intact despite recent pullbacks. Consequently, traders and analysts are eyeing a potential surge back into the $0.038 range, with upside momentum possibly continuing beyond that.
Currently, VELO trades at $0.05942, gaining 2.77% in the latest session. The price sits at a major technical confluence where previous resistance has turned into fresh support. Moreover, the long-term ascending trendline from the lows of 2022 still acts as a base. The trendline affirms the market’s uptrend strength and offers a good support level.
Rounded Bottom Signals Trend Reversal
VELO’s price action formed a rounded bottom spanning most of 2023. This classic reversal pattern indicates a shift from bearish to bullish momentum. The pattern led to a parabolic move in late 2023, confirming strong buying interest. However, the late 2024 correction temporarily halted the rally, pushing prices back toward the long-term trendline.
Source: Javon Marks
Besides, VELO’s oscillator now signals exhaustion of bearish momentum. The momentum indicator shows neutral readings after a prolonged downtrend, confirming the divergence signal’s credibility. Additionally, the chart highlights two technical features: higher lows in price and lower lows in the RSI oscillator. These features collectively support the bullish outlook.
Support Zones Hold as Buyers Return
Major support now sits between $0.050 and $0.055, a region where buyers have consistently entered the market. On the upside, resistance zones appear around $0.070 to $0.075 based on past reactions. Hence, breaking through this zone could open doors for further gains. Moreover, trading volume during major moves shows active participation, which supports stronger trend continuation.
The VELO/TIMER chart, published on TradingView by “pieromb420,” illustrates these developments clearly. It covers nearly two and a half years of market data and shows a well-structured price history. Furthermore, the presence of the Hidden Bullish Divergence in the upper right corner adds further confirmation of the bullish bias.
