Solana

Bitcoin

April

Optimism

Velodrome Finance’s token consolidation continued, reflecting the broader price action seen in Bitcoin and other altcoins. 
Velodrome (<a href="https://crypto.news/price/velodrome/">VELO</a>) was trading at $0.065, a level it has maintained since Aug. 6, giving it a market cap of over $90 million. At its peak in March, Velodrome had a valuation of over $200 million. 
Velodrome, the third-largest decentralized exchange on the Optimism (<a href="https://crypto.news/price/optimism/" target="_blank" rel="noreferrer noopener">OP</a>) network, has faced significant challenges in recent months. Data shows that the total value locked in its ecosystem has dropped from $322 million in April 2023 to $85 million. Additionlly, according to DeFi Llama, its <a href="https://defillama.com/dexs/chains/optimism" target="_blank" rel="">total volume</a> in the past seven days has decreased by over 34% to $197 million. 
This decline in volume aligns with trends seen across other DEX protocols, which have experienced reduced activity following the <a href="https://crypto.news/bitcoin-chart-showing-mixed-signals-following-crypto-black-monday/" target="_blank" rel="noreferrer noopener">crypto Black Monday</a> on Aug. 5. The total volume handled by DEX protocols in August was $111 billion, down from $190 billion in July. 
Typically, DEX and centralized platforms see increased volume when cryptocurrencies are rising, as rallies attract more investors and traders. For instance, Coinbase’s revenue surged by 72% in Q1, reaching $1.6 billion as Bitcoin hit record highs. 
 You might also like: <a href="https://crypto.news/solana-forms-bullish-patterns-as-dex-volume-open-interest-slip/"> Solana forms bullish patterns as DEX volume, open interest slip </a> 
<h2 class="wp-block-heading" id="velo-price-forecast">VELO price forecast</h2> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14292527"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/08/Velo-price.png.webp"> 
 <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/08/Velo-price.png" alt="VELO price"> 
 </picture> 
 <figcaption class="wp-element-caption">
 VELO price chart | Source: <a href="https://www.tradingview.com/symbols/VELOUSD/?exchange=COINBASE" target="_blank" rel="">TradingView</a>
 </figcaption>
</figure> 
The price of Velodrome Finance’s token has seen a sharp decline in recent months. After peaking at $0.3945 in March, it has dropped by over 83% to $0.065, meaning that a $10,000 investment would now be worth just $1,647. 
VELO found strong support at $0.048, where it formed a double-bottom chart pattern. The token has remained below the 50-day moving average indicator. 
It has also moved below the descending trendline that connects the highest swings since April 21. As a result, it has formed a descending triangle pattern, which often leads to a bearish breakout. This triangle is nearing its confluence, suggesting that significant price movements could be imminent. 
The accumulation/distribution and smart money index indicators have also pointed downward. Additionally, the average true range (ATR), a popular measure of volatility, has retreated to its February lows. 
Therefore, the path of least resistance for the token appears to be downward, with the next level to watch being $0.048. A break below this level could lead to further downside. An alternative scenario could see the token bounce back if Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>) bounces back.&nbsp; 
 You might also like: <a href="https://crypto.news/buy-signal-emerges-for-optimism-following-9-price-drop/"> Buy signal emerges for Optimism following 9% price drop </a>

VELO price outlook: big moves expected as DEX volumes drop

Table of Contents

crypto.news

Other articles published on Aug 19, 2024

Could Ethereum Soar Past $3K in September? Examining an 80% Probability

Ava Labs COO's X Account Is Suspected to be Hacked With False Token Launch Information

XRP News: SEC Appeal Unlikely to Affect XRP’s Legal Status, Says Ripple’s Top Attorney

Dogecoin Vs. Shiba Inu War Rages On As SHIB Lead Dev Shares Insight

Weekly Article Recap: 8/05-8/09

Bitwise Acquires ETC Group to Expand in Europe

Join our free newsletter for daily crypto updates!