Velo Price Surges 9.3% as Velo Labs Leverages BlackRock’s Tokenized Fund to Back USDV Stablecoin
The Velo price has surged 9.3% in the last 24 hours to trade at $0.01632 as of 5:07 a.m. EST, based on a 1.1% increase in trading volume to $27 million. The market cap is now at $120 million.
Velodrome (VELO) is a DeFi protocol that is quickly gaining momentum within the Optimism network. As a liquidity-focused platform, it has experienced significant user adoption and increased trading volumes, resulting in a volatile yet compelling price trend.
Velo Labs, the team behind Velo Protocol [VELO], has become the latest crypto-native company to leverage BlackRock’s first tokenized fund to create innovative financial products for its market. In a blog post dated September 10th, the company announced that its USDV stablecoin is now backed by an investment in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
🚀 Velo Labs incorporates BlackRock’s tokenized short-term Treasury Fund (BUIDL) into USDV, enhancing seamless transactions and yield opportunities for over 1M users in SE Asia! With Securitize, backed by BlackRock, this move strengthens the DeFi landscape in the region! 🌏📈
— Velo Official (@veloprotocol) September 10, 2024
So, this strategic move is designed to enhance the stablecoin’s utility, making it more attractive as both a store of value and a yield-bearing asset. In addition, the announcement initially generated interest, with many viewing it as validating Velo Labs’ strategy to broaden its market presence.
Velo Statistics
- Velo price: $0.01632
- Market cap:$120 million
- Trading volume: $27 million
- Circulating supply: 7.3 billion
- Total supply: 23 billion
Velo Price Bulls Gears Up for a Bullish Rally
The VELO/USDT pair on the 12-hour timeframe presents a bullish outlook with a clearly defined rounded bottom pattern, which often signals the reversal of a downtrend and the start of an upward move.
This pattern indicates that the price has transitioned from bearish to bullish momentum. Currently, the price is testing the breakout point near $0.01620, which is critical. If the price holds above this level, it could trigger a strong bullish continuation.
The price also trades above the 50 Simple Moving Average (SMA) at $0.01470174, indicating a positive shift in the short-term trend. This level now acts as potential support, which could protect against short-term pullbacks. The 200 SMA, located at $0.01190007, also represents long-term support and further confirms the bullish trend as the price is comfortably above this level.
Looking at the MACD (Moving Average Convergence Divergence), the lines show signs of convergence, indicating that bullish momentum is building. A MACD crossover in the near future could solidify the bullish trend.
Additionally, the RSI (Relative Strength Index) is currently at 52.62, suggesting neutral conditions, which means the price is neither overbought nor oversold, leaving room for further upside movement without the immediate threat of a correction. Furthermore, the risk/reward setup highlighted on the chart shows a downside risk below the neckline at $0.01470. In contrast, the reward points towards a potential price target near $0.0300, aligning with previous resistance levels.
Final Thought: Can Velo Continue the Bullish Momentum?
If VELO confirms the breakout above $0.01620, we could see a substantial move towards this target, offering nearly a 100% gain from current levels. However, if the price fails to maintain its position above $0.01470, a retest of support around the 50 SMA or even the 200 SMA at $0.01190 could be in play.
There is a strong bullish potential with a possible upward target of $0.0300, provided the breakout above $0.01620 holds. However, traders should watch this level closely, as it will determine whether the bullish momentum continues or if a short-term correction is on the horizon.
Charles Kibue
Charles Kibue is a cryptocurrency researcher and writer with published works on Crypto2Community and a range of other sites. He has also worked as a technical writer, researching NFTs and crypto projects. Charles is an English Literature graduate residing in Kenya. He possesses additional expertise in market analysis and offers accurate and reliable insights, staying up-to-date with the latest developments in the crypto industry. Beyond his professional pursuits, Charles enjoys hiking and horse riding in his leisure time.
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