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Is CRV really suffering after losing 31% of value in the last 30 days?

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Written by

Kevin Lopez
Published on

November 21, 2022

Key points:

  • Over the past month, CRV has lost 31% of its value.
  • According to technical indicators, there is a general pessimism about market conditions.
  • The RSI has not risen above 55 since CRV broke above $1.
  • The expansion of the Bollinger Bands indicates a significant increase in price volatility.
  • The triple EMA readings on the 20-day and 30-day time frames also indicate bearish strength.
  • According to DeFiLlama, TVL dropped from $6.49 billion to $3.98 billion. Meanwhile, transaction volume hovered around $3.52 billion.

The price of Curve Finance’s native token, CRV, has fallen sharply over the past few weeks as bears have struck. The current bear market is attacking traders and investors relentlessly.

As the FTX crisis continues to weigh on the entire cryptocurrency market, well-known cryptocurrencies such as Bitcoin and Ethereum may continue to suffer.

Given the close relationship between CRV and ETH, the latter may drop further in the near future.

Latest figures: Steady depreciation

The token’s value has fallen steadily over the past few months, with the monthly time frame showing its biggest drop of 43% since January, according to data from CoinGecko. Over the past month, CRV has lost 31% of its value.

The on-chain analytics tool provided by CoinMarketCap is also showing red, indicating that there are currently strong bears controlling the coin’s market conditions.

C1 6Chart: TradingView 

Additionally, CRV is currently trading at a loss of $0.5048. According to technical indicators, there is a general pessimism about market conditions. The RSI has not risen above 55 since CRV broke above $1.

The coin’s negative price development can also be explained by its close relationship with ETH. At this point, both cryptocurrencies are highly correlated at 0.94. This means that if its assets deteriorate, the price of CRV will fall along with ETH.

Will the curve recover in the next few days?

The expansion of the Bollinger Bands indicates a significant increase in price volatility. This is a strong indicator in itself, but combined with other variables, it could point to further price declines in the days ahead.

This is supported by a trendline and several candlesticks showing a strong downtrend in CRV.

The triple EMA readings on the 20-day and 30-day time frames also indicate bearish strength. However, the situation reverses on a higher timeframe. 

This may indicate that CRV will do well in the long run. However, this is highly unlikely as not only has the price of CRV dropped, but also the TVL of the protocol.

According to DeFiLlama, TVL dropped from $6.49 billion on November 7 before the FTX crash to $3.98 billion today. Meanwhile, transaction volume hovered around $3.52 billion.

If it's any consolation, the Curve will barely escape the current bear crisis. However, investors and traders who are expecting huge profits from this cryptocurrency in the near future should abandon such expectations.

A short position at the current market price will offset the price movement and generate additional income.

CRV total market cap at $266 million on the weekend chart | Featured image from Forex Academy, Chart: TradingView.comCRV total market cap at $266 million on the weekend chart | Featured image from Forex Academy, Chart: TradingView.com

 


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