Internal Party Selling Action: The wallet address associated with the deployer (creator) of VELVET was found to have transferred tokens worth more than $2.5 million to a centralized exchange right before the price crashed.
Whale Movement: Between June 6 and June 9, 2026, large token movements occurred (around 72 million VELVET or the equivalent of $25 million), triggering market concerns.
Thin Liquidity Impact: Due to low market depth, selling large volumes concentrated in a short period caused the price to drop by up to 73% within a short time.
2. Speculation and High-Leverage Liquidations
The previous surge in Velvet that reached more than 885% in a week was driven by derivative trading with high leverage. When the price started to fall slightly, it triggered a wave of mass liquidation from long positions held by traders, which in turn accelerated the price drop automatically to much lower levels.
3. Profit-Taking Pressure and Token Unlocks
After reaching its peak at $2.07 - $2.13 by the end of June 2026, the price faced renewed pressure due to:
Profit-Taking: Early holders carried out large-scale profit-taking after the extremely aggressive price rally.
Token Unlocks: The unlocking of tokens increases circulating supply, which—if not accompanied by strong demand—#VelvetToken
Whale Movement: Between June 6 and June 9, 2026, large token movements occurred (around 72 million VELVET or the equivalent of $25 million), triggering market concerns.
Thin Liquidity Impact: Due to low market depth, selling large volumes concentrated in a short period caused the price to drop by up to 73% within a short time.
2. Speculation and High-Leverage Liquidations
The previous surge in Velvet that reached more than 885% in a week was driven by derivative trading with high leverage. When the price started to fall slightly, it triggered a wave of mass liquidation from long positions held by traders, which in turn accelerated the price drop automatically to much lower levels.
3. Profit-Taking Pressure and Token Unlocks
After reaching its peak at $2.07 - $2.13 by the end of June 2026, the price faced renewed pressure due to:
Profit-Taking: Early holders carried out large-scale profit-taking after the extremely aggressive price rally.
Token Unlocks: The unlocking of tokens increases circulating supply, which—if not accompanied by strong demand—#VelvetToken