【$VELVET Signal】Short Sell | Main Force Pump and Dump Pattern

$VELVET After a surge with high volume, typical signs of a trap to induce selling appear. The price is pushed higher but Taker sell orders dominate, open interest remains stable rather than increasing, indicating short covering and distribution rather than new long positions entering. High funding rates (0.066%) increase the holding costs for longs, creating conditions for a pullback.

🎯Direction: Short Sell

🎯Entry: 0.1125 - 0.1135

🛑Stop Loss: 0.1160 (Rigid Stop Loss)

🚀Target 1: 0.1050

🚀Target 2: 0.0980

The 4-hour chart shows that the last candlestick, accompanied by a massive volume (18.8 million), has a narrowing upward movement, forming an upper shadow. This is a classic “volume-price divergence” signal indicating distribution. The buy/sell ratio has continuously decreased from 0.53 to 0.46, showing market buying momentum weakening. The order book’s ask side is heavy and dense, forming a strong resistance zone. Logically, this is an attempt to distribute during market FOMO, and once buying momentum exhausts, the price will quickly retrace its gains.

Trade here 👇 $VELVET

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