Curve DAO Token price plunged to lows of $0.44 on Wednesday, with bears still in control since the recent exploit on multiple stablepools on Curve. The next price level to watch is $0.4.
Elsewhere, crypto markets are largely uneventful as traders eye directional clarity. Last week’s price massacre has bulls searching for a fresh trigger, even as a significant chunk of attention is on the Federal Reserve’s Jackson Hole summit.
Both bitcoin and ether remain near key levels, while XRP is looking to stabilise above $0.50 after bulls pared all gains seen when price exploded on the Ripple win against the SEC.
Here’s why CRV price is under downside pressure
Curve DAO Token’s latest price declines come after bulls managed to recover above $0.64 earlier this month. The prior dump had come after the aforementioned exploit. But with efforts to prevent extensive damage taken in the form of OTC sales of CRV, possible whale dumping has traders anxious.
Much of the jitters are down to price moving closer to a liquidation level after Curve Finance founder Michael Egorov sold 210 million CRV to help steady the token. The sales were taken at the average price of $0.40, with buyers agreeing to an unenforceable lockup period of six months.
Speculation is that many of the OTC buyers have moved the acquired CRV to exchanges. If price breaks to $0.40, the next stop could be $0.37, the liquidation level of several CRV-backed loans that Egorov took.
Crypto trader and analyst Hsaka noted this via a post on X (fka Twitter. He shared a chart showing Curve DAO Token price outlook and noted the DeFi token continues to bleed.
Despite Michs exhaustive efforts, Curve continues to slowly bleed.
Rapidly approaching $0.4
where 210m coins ($85m)
~1/4th the circulating supply
were sold OTC
with «handshake agreement» lockups.
A few sophisticated actors have already moved their coins to CEXs
– Hsaka (@HsakaTrades) August 22, 2023
- Curve DAO Token (CRV) price fell to lows of $0.44 on Wednesday as most crypto tokens lost recent gains.
- CRV price has declined by 17% this past week.
- Analysts point to potential declines to liquidation level below $0.40.