- VELO shows bullish divergence with MACD higher lows while price forms lower lows, signaling a potential trend reversal.
- VELO’s consistent support at $0.01300 suggests a potential bounce, with reduced bearish pressure and upcoming momentum shift.
- MACD histogram shrinking signals weakening bearish momentum, supporting a potential recovery to $0.036 with a 221% gain.
As perf Javon Marks, VELO’s price action has recently formed a notable technical pattern that suggests a potential recovery. Despite recent pullbacks, technical indicators point to a hidden bullish divergence. This pattern could signal a move back to the $0.036 range, with a potential recovery exceeding 221%. The formation of higher lows on the MACD, combined with a lower low in the price, points to waning bearish momentum.
Hidden Bullish Divergence: A Key Indicator
The VELO/USDT pair has shown an interesting divergence between price and momentum indicators. Price has formed a series of lower lows, notably in mid-2023 and early 2025. However, the MACD indicator has behaved differently. While the price marked a lower low, the MACD made a higher low, signaling reduced bearish pressure. A downturn usually ends with this kind of divergence, indicating a possible reversal.
Additionally, the MACD histogram has become smaller and is now nearer the zero line. The market’s bearish momentum is waning, as evidenced by the change from large red bars to smaller ones. The upcoming weeks could see a potential crossover in the MACD lines, which would further confirm the change in trend direction.
Long-Term Support Zone Holds Strong
VELO has consistently tested its long-term ascending support trendline. The price around $0.01300 has proven to be a key level, serving as a strong support zone. Each visit to this level has previously resulted in upward movements, confirming its relevance. As of now, the price is nearing this zone again, suggesting that VELO could be preparing for another bounce.
Furthermore, despite multiple failed breakout attempts throughout 2024, the price has respected this support structure. The market remains in a prolonged consolidation phase, with price action locked within a descending channel. The MACD’s behavior reinforces the idea of reduced downside pressure and potential upward movement.
