Velodrome’s VELO Surges After Binance Listing as Rare Pattern Emerges

Velodrome Finance’s VELO token has experienced a significant price surge, reaching its year-to-date high after being listed on Binance. The listing has propelled VELO to a new peak of $0.0335, marking an impressive 810% increase from its lowest price point earlier in the year. This surge has boosted the token’s total market capitalization to over $282 million, as it gains exposure to Binance’s vast user base, which numbers in the millions.

VELO’s price jump came after Binance, the world’s largest cryptocurrency exchange, listed the token with a “seed tag,” signaling it as a newly launched token. This listing is significant because it provides VELO with access to the massive liquidity and visibility that Binance can offer, potentially driving up its trading volume in the coming days. Prior to the Binance listing, VELO was mostly traded on other exchanges like MEXC, OKX, Gate, and XT. Given Binance’s size and influence, the token’s volume is expected to increase, which could further fuel its price rally.

Historically, cryptocurrency prices often experience surges when major exchanges list tokens. However, these rallies can sometimes be short-lived as the initial hype fades. Despite this, Velodrome Finance has solidified its position as one of the top decentralized finance (DeFi) players, especially within Optimism’s ecosystem. The total value locked (TVL) in Velodrome Finance has exceeded $100 million, and the decentralized exchange (DEX) volume in the past week surpassed $700 million. These figures make Velodrome one of the largest DEX platforms in Optimism’s ecosystem, surpassing other notable platforms like Uniswap (UNI), WOOFI, Beethoven, and Curve Finance.

Velodrome Finance has processed over $20 billion in assets cumulatively, and with the increasing volume across DEX platforms like Raydium and Uniswap, the trend of rising transaction volumes is expected to continue, especially if the broader crypto market enters a bull run. As the market for decentralized finance expands, platforms like Velodrome are well-positioned to capitalize on the growing interest in DeFi.

From a technical analysis perspective, the VELO token appears to be on an upward trajectory. The daily chart reveals a strong uptrend over the past few months, with the token recently retesting the key resistance level of $0.030. This level, which was previously reached in May 2024, marks the upper boundary of a classic cup-and-handle pattern. The cup-and-handle formation is widely regarded as a bullish continuation pattern, which suggests that VELO could continue to rise in the near term.

In addition to the positive price action, VELO has also moved above both the 50-day and 100-day moving averages, further signaling that the token could maintain its upward momentum in the long term. By measuring the depth of the cup in the cup-and-handle pattern, analysts predict that VELO could eventually reach a target price of $0.054, representing a 109% increase from its current price.

In conclusion, Velodrome Finance’s VELO token has seen an extraordinary price increase following its Binance listing. The listing has provided the token with a significant boost in visibility and liquidity, potentially driving further gains. With a solid foundation in the DeFi sector and positive technical indicators, VELO has the potential for continued growth, with analysts forecasting a further price increase. However, as with all cryptocurrency investments, traders should remain cautious, as the initial hype from a Binance listing could eventually subside.