VELO Price on the Brink: Can It Survive the 3 Billion Token Unlock Tsunami?
Massive token unlock event threatens to flood the market—will VELO holders face a liquidity crisis?
The Mechanics of Unlocks
Three billion tokens hitting the market at once creates immediate sell pressure. Historical patterns show similar events triggering double-digit price corrections within 72 hours.
Market Psychology at Play
Fear of dilution drives pre-emptive selling. Smart money already positioning shorts while retail traders cling to hopium—classic crypto casino behavior where the house always wins.
Technical Support Levels
Key Fibonacci retracement zones become critical. A break below $0.025 could trigger algorithmic selling cascades—market makers already adjusting liquidity pools accordingly.
The Institutional Wildcard
VCs and early investors hold most unlocked tokens. Their sell discipline—or lack thereof—will determine whether this becomes a controlled burn or full-blown dumpster fire. Remember: in traditional finance, this would require SEC filings; in crypto, it just requires a Twitter announcement and prayers.
Volatility arbitrage opportunities emerge during such events, but timing the bottom is like catching a falling knife—better suited for degens with iron stomachs than rational investors.
VELO price forms a descending parallel channel on the daily chart — Sep. 3 | Source: crypto.news
Momentum indicators such as the MACD and Relative Strength Index were also pointing downwards, with the RSI still far from oversold levels. This confirms that the short-term outlook remains bearish for the moment.
As such, VELO may continue to trend lower if it continues to trade within the descending channel.
Based on these technicals, the most likely target for Velo remains down at $0.0119, which has acted as a strong support area multiple times earlier this year. If the support fails to hold, a MOVE towards $0.010, a psychological support level, may be on the table.
However, a bullish breakout above the upper boundary of the channel WOULD invalidate this setup.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
