- Analyst EtherNasyonaL identifies VELO nearing a key demand zone after a wedge breakout.
- Traders monitor $0.0078 as bearish momentum tests the structure’s lower boundary.
- Market sentiment weakens amid merger discussions and cautious investor behavior.
VELO’s market structure approaches a decisive moment as technical signals indicate growing downside pressure. Analyst EᴛʜᴇʀNᴀꜱʏᴏɴᴀL notes that the asset is testing a critical demand zone that could determine whether it stabilizes or extends its decline.
Analyst Flags Bearish Rising Wedge Breakdown
According to crypto analyst EᴛʜᴇʀNᴀꜱʏᴏɴᴀL (@EtherNasyonaL), VELO has completed a retest following a bearish rising wedge breakout, a pattern often linked to exhaustion phases in extended uptrends. The structure suggests a potential shift from accumulation to distribution as momentum fades.
The two-week chart shows VELO’s price breaking below the wedge before retesting the former support line, which now acts as resistance. This dynamic typically marks the line between short-term recovery and continued decline. The analyst explains that the token is “heading directly toward the demand zone,” a region where price has historically attracted strong buying reactions.
If this zone holds, VELO could rebound toward the wedge boundary and regain short-term stability. However, a sustained close beneath this support could trigger a deeper correction, potentially driving price action toward new structural lows. The current setup, according to the analysis, presents an “either turn or fall” scenario where upcoming candles will define direction.
Technical Outlook and Market Positioning
According to CoinMarketCap, VELO is as of writing, trading at close to $0.008005, which is a 3.66 percent daily drop. Although there is moderate trading, the volume remains dry with diminishing appeal by short-term players. The market cap of the token stands at $140.61 million and FDV at 192.14 million, which means that a significant part of the supply has been left unlocked.
The analysis provided by EtherNasyonaL also forms part of the larger technical circumstances being witnessed in mid-cap altcoins that are losing their trendline support. A decline in buyer conviction can also be observed in the form of the decreasing highs of each rally as indicated by the momentum indicators. The traders are now targeting the $0.0075-0.0078 price range which is believed to be the last near term support before the more significant levels of retracement are reached.
The measured-move target derived from the wedge formation suggests potential downside extension if demand fails to reappear. Any rebound will require strong volume and confirmation through higher-timeframe closes above $0.0085.
Community Reaction Adds to Market Caution
While EtherNasyonaL’s chart-based assessment remains the primary technical reference, community sentiment has also influenced VELO’s trajectory. On social platform X, a user named CurlyHair warned holders that the upcoming Aerodrome–Velodrome merger could reduce VELO’s relevance within its ecosystem.
The post urged traders to sell before a possible token migration, adding to widespread caution. Such reactions, though speculative, have amplified defensive positioning as investors await official updates. Combined with the bearish chart pattern, these discussions underscore the fragile confidence across VELO markets.
Traders continue to watch for strong reactions at the demand zone. A firm recovery could revive short-term momentum, but failure to defend current levels risks confirming EtherNasyonaL’s bearish outlook and extending the ongoing correction.
