VELO’s Technical Setup Signals Major Upside, Says Analyst

VELO holds strong above key support, with bullish patterns and a multi-year channel suggesting a possible 260 percent breakout ahead.

A rebound from $0.0115 and consistent channel support could push VELO toward the $0.0489 level as momentum indicators turn positive.

Technicals like Bollinger Bands and the Awesome Oscillator point to sustained bullish momentum if VELO breaks near-term resistance.

VELO could be gearing up for a powerful breakout, as suggested by trader JavonMarks in his latest market insight. The token currently trades near $0.0130, positioning itself just above a key support zone. According to Javon, a potential surge of over 260% could follow, pushing VELO toward the $0.048 level if the current technical setup holds. This scenario is supported by a multi-year ascending channel that has governed price action since early 2023.

Source: Javon Marks

The chart illustrates a well-defined uptrend, anchored by two large harmonic wave formations. These patterns originated from a major low formed in late 2022. From there, VELO entered a bullish structure that has seen consistent upper and lower boundary tests. Significantly, price has respected the lower channel line throughout, indicating strong dynamic support.

Recent Price Movements and Market Behavior

In recent months, VELO retraced to the channel’s lower boundary, stabilizing near $0.0115 before showing early signs of a rebound. Additionally, the upward arrow suggests an anticipated move toward the $0.0489 region. This level matches the upper channel boundary and represents a logical future target if the trend persists.

Besides historical channel behavior, recent 4-hour chart data from April 23 to June 9 supports this setup. The token saw a sharp rally in mid-May, climbing from $0.0125 to $0.0156. However, a correction followed, pulling the price back to the $0.0120 support. This move formed a broader consolidation range, with VELO now fluctuating between $0.0120 and $0.0156.

Technical Indicators and Trading Activity

Moreover, Bollinger Bands indicate volatility expansion during those rapid moves and contraction during consolidation. The 20-period SMA continues to act as both support and resistance. These levels align with key market turning points.

Source: TradingView

The Awesome Oscillator also confirms momentum shifts, with green bars appearing during upward phases and red bars during declines. Volume has remained healthy, with spikes accompanying major price changes. This shows that interest remains strong, even during sideways trading.

Consequently, if VELO holds its current structure and breaks above near-term resistance, the projected move could materialize. Javon’s analysis points to a bullish continuation, with upside potential in the months ahead.

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