Velas (VLX) Rallies After Deal With Ferrari

Velas Becomes Scuderia Ferrari’s New Premium Partner

Ferrari has recently revealed that Velas Network AG will be its Premium Partner from the next season. The companies reached a multi-year agreement for the “creation of exclusive digital content for the Scuderia’s fans”.

Ferrari introduced Velas as “a global player in the blockchain and NFT sector”, and it is obvious that it wants to join the global rush into the NFT market segment. It should be noted that the official press release from Ferrari did not directly mention the company’s intention to get into the NFT business.

Not surprisingly, VLX, the token of the Velas Blockchain, rallied after the announcement. It has recently pulled back a bit amid a broad sell-off in crypto markets, but continues to trade well above recent lows.

VLX Is Still Down By More Than 45% From November Highs

VLX gained strong upside momentum after it managed to get above the 50 EMA at $0.2810. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

It should be noted that RSI is located well below previous peaks that were reached in September and November, which means that VLX would have an opportunity to gain strong momentum without material pullbacks in case the interest in Velas project continues to increase after the deal with Ferrari.

The nearest resistnace level for VLX has emerged near $0.3650. In case VLX gets above this level, it will move towards the next resistance at $0.3850. A successful test of this level will push VLX towards the resistance at $0.4150.

On the support side, the nearest support level for VLX is located at $0.3150. If VLX declines below this level, it will move towards the next support at the 50 EMA at $0.2810. A move below the 50 EMA will push VLX towards the support at the 20 EMA at $0.2700.