The Curve DAO token (CRV) has lost 58% in price over the past three days. This could be because of multiple large, small bets that create heavy selling pressure.
There appears to be a coordinated attack underway against the CRV right now. The attack is taking place on the incoming protocol. prominent merchant @Avi_eisen reportedly a $8 million short bet on CRV.
On the other hand, Curve Finance Founder Michael Egorov There is $48 million of CRV supplied on Aave, with a liquidation price of $0.259. While it is still a long way off from the current prices, it is worth keeping an eye if the CRV continues to decline.
CRV withstands the liquidation cascade
Triggering the liquidation level could push the price further down. Additionally, a whale address 30 million borrowed CRV from Aave Protocol is taking profits today, possibly with the intention of going short and then continuing to decline in CRV price.
Finally, another CRV short borrowed $20 million worth of CRV tokens from Aave and has currently dumping It is on the OKX exchange. Overall, there appears to be $58 million of selling pressure from just three traders in the Aave protocol.
With these things in mind, let’s take a look at the price action and try to determine whether the CRV price will trigger this liquidation level.
In doing so, it reached a low of $0.42 on 22 November. While it appears that there has been a breakdown from the channel, since then the CRV price has not closed below the channel. Hence the breakdown is not confirmed.
However, CRV also broke the $0.58 horizontal support area, which is now expected to provide resistance. There is no close price level that can act as a support.
Lastly, the daily RSI is declining and a bullish divergence has not yet formed. As a result, the CRV price forecast is bearish.
A drop below this would take the price to its all-time low. Then, the 1.27 External Fibonacci of the most recent decline at $0.25 would trigger the liquidation level. Therefore, if there is a breakdown from the last support area at $0.35, a liquidation seems likely.
It is also supported by the weekly RSI, which is below 50 and declining. A significant bounce to the $0.35 area would invalidate this bearish CRV price prediction.
For the latest crypto market analysis from BeInCrypto, click here,
Disclaimer: BeInCrypto endeavors to provide accurate and up-to-date news and information, but will not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.
disclaimer
All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.