Velvet Traders Refuse to Give Up Amid 75% Week-Long Decline

The cryptocurrency Velvet (VELVET) has been on a downward spiral over the past week, losing 75% of its value in just seven days. However, despite this significant decline, traders remain optimistic about the asset's potential for recovery.

Data from CoinGlass shows that the Taker Buy Sell Ratio, which measures long trading volume against short trading volume in the perpetual market, has tilted towards the sell side with a reading of 0.95. This indicates that sellers are dominating the market, but the reading is only slightly below the 1 mark.

Despite this bearish pressure, trader positioning remains net long, with the Funding Rate printing a mildly positive reading of 0.0050%. This suggests that traders are still positioned for an upward move in the future.

In fact, Velvet has shown impressive growth over the past month and quarter, surging 59% and climbing 533% respectively. However, this short-term conviction remains questionable, as long liquidations have been higher than shorts, making shorting Velvet more profitable than going long.