Velodromes VELO Soars After Binance Listing As A Rare Pattern Forms

Velodrome Finance price surged and reached the year-to-date high after getting listed by Binance. 

Velodrome Finance (VELO), one of the biggest players in Optimism’s (OP) ecosystem, jumped to a high of $0.0335, up by 810% from its lowest level this year. Its rally brought the total market cap to over $282 million.

VELO’s jump happened after Binance, the biggest crypto exchange in the industry, listed its token with a seed tag. That listing will give it exposure to millions of customers who use the Binance platform.

Data by CoinGecko shows that most VELO tokens are traded on exchanges like MEXC, OKX, Gate, and XT. As such, because of Binance’s scale, the odds are that its volume will rise in the next few days. 

Historically, cryptocurrencies rally when they are listed by major exchanges. These gains, however, are often short-lived as the hype eases.

Velodrome has become a top player in the decentralized finance industry. Its total value locked has risen to over $100 million, while the DEX volume in the last seven days stood at over $700 million. This makes it bigger than other popular Optimism DEX networks like Uniswap (UNI), WOOFI, Beethoven, and Curve Finance. 

Velodrome Finance has handled over $20 billion in assets cumulatively, a trend that may continue as the crypto bull run accelerates. Most DEX networks, led by Raydium and Uniswap, have seen a sharp increase in volume this year, with their November volume rising to over $371 billion.

The daily chart shows that the VELO price has been in a strong uptrend in the past few months. It has recently retested the important resistance level at $0.030, its highest point on May 10. 

This was an important level since it was the upper side of the cup and handle pattern. It has even completed forming the handle section. C&H is a popular bullish continuation sign.

Velodrome price has also moved above the 50-day and 100-day moving averages. Therefore, there is a likelihood that the token will continue rising in the longer term. By measuring the depth of the cup, we can estimate that the VELO price will eventually jump to $0.054, which is about 109% above the current level.