An 84% rally always looks exciting.
What interests me more is what usually happens after a move like this.
$VELVET has surged from around $0.46 to above $0.91 in a very short time, posting an 84% gain in the last 24 hours.
Volume has expanded alongside the breakout, and the price is trading well above the 20, 50, and 200 EMA. That's a sign buyers are still in control.
But one number stands out.
RSI is now above 85.
That doesn't automatically mean the rally is over. Strong trends can stay overbought longer than most traders expect.
The real question is whether buyers can defend this breakout once early profit-taking begins.
If VELVET keeps holding above the recent breakout zone with healthy volume, the trend could continue higher.
If volume starts fading while the price struggles near the highs, a pullback to retest support would become much more likely.
The biggest mistakes often happen after the biggest candles.
Chasing momentum is easy. Knowing when momentum is fading is where the real edge begins.
What interests me more is what usually happens after a move like this.
$VELVET has surged from around $0.46 to above $0.91 in a very short time, posting an 84% gain in the last 24 hours.
Volume has expanded alongside the breakout, and the price is trading well above the 20, 50, and 200 EMA. That's a sign buyers are still in control.
But one number stands out.
RSI is now above 85.
That doesn't automatically mean the rally is over. Strong trends can stay overbought longer than most traders expect.
The real question is whether buyers can defend this breakout once early profit-taking begins.
If VELVET keeps holding above the recent breakout zone with healthy volume, the trend could continue higher.
If volume starts fading while the price struggles near the highs, a pullback to retest support would become much more likely.
The biggest mistakes often happen after the biggest candles.
Chasing momentum is easy. Knowing when momentum is fading is where the real edge begins.