VELVET Derivatives Purge $25M in Leveraged Longs as Spot Wallets Absorb $182K
CoinGlass data shows VELVET's 30-day perp flush cost 18% even as spot netflow and funding rates point to renewed accumulation.
VELVET is up roughly 10% over the past 24 hours, but the move sits on top of a 30-day derivatives washout that erased 18% of the token’s value, according to CoinGlass data cited by AMBCrypto. Perpetual markets saw $25.38 million in net sell-side flow over the trailing month, a sign that overleveraged longs were forced out before the current bounce could take hold.
Perp flows still leaning short-term bearish
The deleveraging hasn’t stopped. In the most recent 24-hour window, net sales pulled roughly $256,000 out of VELVET’s perpetual market, with sell-side flow still dominant. That keeps the derivatives book in cleanup mode even as spot price ticks higher.
The one figure working in bulls’ favor is funding. The funding rate has stayed positive through the entire flush-out, meaning traders opening longs are still paying a premium to stay in the position — a signal that positioning hasn’t flipped defensive despite the 30-day drawdown. VELVET is still up roughly 200% year-to-date, a base that likely explains why funding hasn’t gone negative under pressure.
Spot netflow diverges from derivatives
Spot market behavior tells a different story than the perp book. Over the last 24 hours, roughly $182,000 in VELVET moved off exchanges into private wallets, pushing net spot flow to about $22,000 in outflow-dominant territory. Outflows typically indicate coins being pulled into longer-term storage rather than parked for near-term selling.
That pattern isn’t new for this week. At the weekly open, exchanges saw $529,000 worth of VELVET withdrawn, reinforcing the accumulation read. Community sentiment tracked on a -10 to 10 scale currently sits at roughly 5.77, consistent with a market still leaning bullish on positioning, if not yet fully de-risked.
Liquidation clusters sit below spot price
The setup isn’t without downside risk. CoinGlass’s two-week liquidation heatmap shows a dense cluster of leveraged positions sitting between $3.6 and $3.8, below VELVET’s current price. Liquidity pockets of this density tend to act as gravitational zones — price often gets pulled toward them before any sustained move higher can develop.
For traders reading the tape, the divergence is the story: spot wallets are accumulating and funding remains constructive, but the derivatives book hasn’t finished unwinding and a retest of the $3.6–$3.8 liquidity zone remains firmly on the table before any breakout attempt gains real conviction.