ChartNerdTA VELO Leading Diagonal Nears Breakout at $0.004

Key Technical Indicators for Velo Protocol ($VELO)

• •
  ChartNerdTA identifies Velo Protocol’s ($VELO) multi-year leading diagonal structure as being in its final moments, with a critical level at the $0.004 golden ratio.
• •
  A confirmed weekly close above $0.004 is anticipated to trigger a significant breakout, initiating a powerful Wave 1–Wave 3 sequence.
• •
  Projected targets derived from the pattern suggest a minimum of $0.16 and an extended target of $0.38.

Respected pattern analyst ChartNerdTA (@ChartNerdTA) has alerted the cryptocurrency community to a significant development concerning Velo Protocol ($VELO). The analyst suggests that VELO is nearing the completion of one of the most clearly defined leading diagonal structures observed in the crypto market, with a key breakout point identified at $0.004.

In a detailed analysis shared on November 29, 2025, accompanied by a comprehensive multi-year chart, ChartNerdTA illustrated how VELO has formed a precise five-wave declining wedge, also known as a leading diagonal, since its all-time high in 2021. These infrequent patterns are typically observed in Wave 1 or Wave A positions within Elliott Wave theory and are historically followed by strong, impulsive price movements in the opposing direction.

Currently, the price action is consolidating near the lower boundary of this pattern, specifically at the 0.618 Fibonacci retracement level, which is precisely $0.004. This level is frequently cited as a critical reversal zone for such patterns. ChartNerdTA emphasized the importance of this level, stating, "Must hold the 0.618 GR at $0.004. Leading diagonal structure looks to be nearing its completion."

Historical precedents for similar chart patterns have shown remarkable performance. Leading diagonals observed in assets like Solana (SOL) in 2020, Polygon (MATIC) in 2019, and Chainlink (LINK) in 2019 resulted in substantial returns, ranging from 50x to 200x within a year of their respective breakouts. Applying this historical context to VELO, the pattern analysis projects a conservative Wave 3 target of $0.16 and an extended Wave 5 target of $0.38. These figures represent potential gains of 40x to 95x from its current trading price.

On-Chain Signals and Market Sentiment

Complementing the technical analysis, on-chain data for VELO appears to be signaling positive momentum. The velocity of VELO transactions is reportedly increasing, and the supply held on exchanges has decreased by 38% since September. Furthermore, the number of holders possessing over 1 million tokens has reached an all-time high.

Concurrently, the perpetual futures market indicates deeply negative funding rates and cycle lows in open interest, conditions often associated with a potential short squeeze. ChartNerdTA issued a clear warning regarding the immediate future: a single strong weekly close above the $0.004 threshold would validate the completion of the diagonal pattern, signaling the commencement of a significant upward price movement.

Risk-Reward Profile and Market Timing

For a cryptocurrency currently ranked outside the top 300 with a market capitalization below $100 million, the risk-reward ratio presented by this technical setup is described as generational. The critical support level, or "line in the sand," is set at $0.004. Holding this level could position VELO to become a leading performer in the anticipated 2025–2026 bull market. Conversely, a failure to maintain this support would invalidate the bullish pattern.

The market is facing a crucial decision point, with the outcome likely to be determined within the coming days or even hours.