📉 VERTICAL STALL! Velvet ($VELVET ) Rejects $0.083 Resistance After 9.7% Rally: Short Setup! [SHORT]
⚡ TRADE EXECUTION (VELVET/USDT Perpetual)
📉 ENTRY ZONE: $0.0795 – $0.0815
🛑 STOP LOSS (SL): $0.0845 (Above the 24h high and liquidity ceiling)
🎯 TARGET 1: $0.0735
💰 TARGET 2: $0.0685 (Major structural support floor)
🔥 WHY WE ARE SHORTING VELVET
Velvet (VELVET) has hit a significant technical resistance wall on the 1-hour timeframe as of February 19, 2026. After a sharp vertical recovery, the price action is signaling a potential "blow-off top" and reversal:
Aggressive Wick Rejection: The price staged a rapid surge to a 24-hour high of $0.08335 but was met with immediate, heavy selling pressure, leaving behind a clear bearish upper wick. This indicates that a significant pocket of institutional supply (sellers) is active at this local peak.
MACD Exhaustion: On the 1-hour chart, the MACD DIF line (0.00124) is attempting to maintain its lead over the DEA line (-0.00012), but the histogram bars are starting to flatten at the peak. A failure to reclaim the $0.082 zone will likely trigger a bearish crossover, accelerating a slide toward the moving average supports.
Extreme Market Fear: Broad crypto market sentiment remains pinned in "Extreme Fear" (Index Score: 8–10). In this high-risk environment, independent altcoin pumps (VELVET is up +9.70%) are frequently used by whales as "exit liquidity," often resulting in rapid mean-reversion crashes back to the base.
Volume Climax Signal: The final push toward $0.083 was accompanied by a localized volume spike (MA5: 9.78M VELVET), followed by a red candle rejection. This "buying climax" often marks the point of maximum retail FOMO just before a trend reversal.
Technical Mean Reversion: VELVET is currently trading significantly above its previous structural support near $0.0685. A retracement to "fill the gap" and test the breakout floor is a high-probability technical outcome to neutralize th
