VELO price analysis: Velodrome token eyes a surge despite whale sales

Velodrome Finance’s token continued its strong rally this week as volume on its platform jumped, coinciding with the launch of Optimism’s SuperStacks rewards.

Velodrome Finance (VELO) rose to $0.01740 on Wednesday, July 16, its highest swing since March 3 and 105% above its lowest point this year.

The VELO token climbed as third-party data showed rising volume on its decentralized exchange this month. The platform has handled over $597 million so far in July, up from $1.1 billion last month. If the trend continues, July’s volume could surpass June’s.

VELO’s volume is likely to remain strong amid a broader crypto market rally that has lifted most digital assets. Historically, both centralized and decentralized exchange volumes tend to rise during bull markets.

VELO price also jumped after Optimism (OP) launched the SuperStacks rewards program, designed to incentivize users across its decentralized finance ecosystem. More than $200 million was contributed during the program, with over 50,000 users participating. A total of 20,545 Velodrome users have begun claiming their rewards.

Further supporting the rally, Velodrome’s developers recently launched Superswaps, a platform that allows users to swap assets across multiple chains within a single interface.

Still, VELO faces potential risks. The share of tokens held by whales has dropped 65% over the past 30 days, while smart money holdings are down to 4,915. Meanwhile, the supply of VELO on exchanges has climbed to 344.6 million.

VELO price technical analysis

Velodrome Finance price chart | Source: crypto.news

The daily chart shows that Velodrome Finance’s token bounced back this month, climbing from a low of $0.01160 to its highest level since March.

VELO broke above a key resistance level at $0.01575, its May 10 high and the neckline of a double-bottom pattern. It also moved above the 50-day and 100-day Exponential Moving Averages, signaling bullish momentum.

VELO’s Average Directional Index has climbed to 20 and is trending upward, indicating sustained momentum. The Relative Strength Index is approaching the overbought threshold at 70.

Given this setup, VELO will likely continue rising as bulls target the 50% Fibonacci retracement level at $0.02372, approximately 36% above current levels. A drop below the $0.015 support would invalidate the bullish outlook.