Velvet [VELVET] slides 18%, but longs hold control after 571% gain in 90 days

Velvet (VELVET) dropped roughly 18% in a single session, emerging as one of the market’s heaviest losers over the past day. Despite this pullback, the token remains one of the strongest gainers over the past three months, posting a 571% gain in 90 days and outperforming every other asset in the top 100 by market capitalization. The second-best performer, Audiera (BEAT), surged 530% over the same stretch.

A capital exodus is spreading across Velvet’s market, with the token’s perpetual futures market showing heavier outflows than inflows. Data indicates that roughly $24 million has flowed out of the perpetual market over the past two weeks, pointing to investors heading for the exits.

Spot market investors have failed to keep pace with the move, buying comparatively little VELVET over the same window. The chart shows a total spot netflow of roughly $847,000. Spot buying of that scale rarely fuels a rally on its own.

Despite the recent pullback, traders in Velvet’s perpetual market have clung to a bullish outlook. Funding Rate data shows that longs have stayed in command. A net outflow of $2.17 million was recorded over the past 24 hours, but the Funding Rate reached 0.0044%, suggesting the $27.87 million perpetual market balance still sits largely in long positions.

The sentiment holds that Velvet’s decline looks more like consolidation and capital management from traders who have banked massive gains. Chart analysis places Velvet a single key level away from either staging a rebound or extending its slide. Price has traded into an ascending support line that has powered rebounds on at least three previous occasions.

A breakdown from this level could send Velvet tumbling once more toward $0.45, where a key demand zone sits. Should the ascending support hold instead, Velvet’s rebound could already be taking shape. The support level remains the chart’s decisive area to watch for the next move.