Velvet’s recent slide of 75 % has caught the eye of many traders, but the data shows that long positions are still in the game. Even after suffering losses that are seven times the size of those taken by short traders, the bulls have not abandoned the asset. This stubbornness suggests that a segment of the market is still convinced that Velvet’s fundamentals or future prospects justify holding, despite the steep decline.
The broader crypto environment is not offering much comfort. Bitcoin is trading around $62,100, down 1.27 % over the last 24 hours, while Ethereum sits near $1,738, down 0.79 %. The fear‑greed index sits at 22, classified as “Extreme Fear,” indicating that many investors are wary of further downside. In such a climate, the fact that long positions remain active is noteworthy and could hint at a potential turning point if sentiment improves.
For retail traders, the key takeaway is that Velvet’s price action is still highly volatile. While the persistence of longs may bode well for a rebound, the magnitude of losses taken by those longs also underscores the risk of a continued slide. Watching the next weekly close, any regulatory developments, or broader market catalysts will be essential to gauge whether the bulls’ conviction holds or if the asset will continue to be pressured by the prevailing fear.
In short, Velvet’s dramatic drop and the continued bullish stance of long traders present a mixed picture. Retail investors should stay alert to market sentiment shifts, keep an eye on weekly price trends, and be prepared for either a sharp rebound or further decline as the market navigates its current state of extreme fear.