The cryptocurrency sector may be stuck in a prolonged bear market, yet some tokens still manage to outperform with significant upward moves.

Velvet (VELVET) is a standout example, having jumped by quadruple digits in the past month. And while some analysts expect more short-term upside, others warn the altcoin could be a ticking time bomb.

Further Rally?

As of press time, the altcoin trades at around $1.58 (according to CG), representing a 250% increase on a weekly scale and a staggering 1,700% pump over the last 30 days.

Its market capitalization has risen to nearly $700 million, making VELVET the 90th-biggest cryptocurrency. One potential catalyst for the price explosion could be the project’s collaboration with AerodromeeFi.

“With the integration, you now:

– Get tighter pricing
– Pay less slippage
– Tap deeper liquidity on every trade
– Land better fills, automatically,” the announcement reads.

Later on, the project introduced Velvet-1: an Artificial Intelligence (AI) model for on-chain intelligence, which could also have positively impacted the price.

Several analysts have highlighted the coin’s performance and believe it might have more fuel for additional gains. X user Crypto With Gopal claimed that the price “is tightening inside a Symmetrical Triangle after a sharp bullish impulse.” He argued that sellers continue to lose control, setting a short-term target of $2.1.

The Boss also issued an optimistic prediction, arguing that the latest breakout attempt shows that buyers remain active after consolidation rather than immediately giving back gains. The analyst claimed that the current structure looks “healthier than it did 24 hours ago, with the chart transitioning from recovery mode into expansion mode.”

“If momentum persists and volume follows through, the market could begin testing higher liquidity zones that were previously rejected during the first impulsive move earlier this month,” they concluded.

‘Generational Short Opportunity?’

Many other analysts believe investors should stay away from the altcoin as it may experience a steep decline in the near future. Yesterday (June 28), X user Crypto with Haris ₿ predicted that VELVET could crash to $0.90 in the next six hours (which didn’t happen), calling the setup a “generational short opportunity.”

For his part, Vuori Trading claimed that the token is another “Binance Alpha aka. CZ scam.” In his view, the token seems to be nearing its top, but if it crosses $2, it might explode to $8.

The coin’s Relative Strength Index (RSI) reinforces the bearish outlook. The ratio has risen past 80, meaning VELVET has entered extreme overbought territory and could be on the verge of a collapse. The technical analysis tool ranges from 0 to 100, with anything below 30 considered a buying opportunity.

Source: CryptoPotato