Curve Finance Sheds 31% Of Value In Last 30 Days – Are Things Really Bad For CRV?

Christian Encila

2 years ago

3 mins read

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The price of Curve Finance’s native token, CRV, has been falling precipitously in recent weeks as the bears have pounced. The present bear market has been relentless in its assault on traders and investors.

As the FTX crisis continues to weigh on the cryptocurrency market as a whole, prominent cryptocurrencies like Bitcoin and Ethereum are likely to continue to feel the pain.

Given the strong relationship between CRV and ETH, the latter is likely to suffer further declines in the near future.

Latest Numbers: Steady Drop In Value

According to CoinGecko’s numbers, the coin’s value has been steadily decreasing over the past few months, with the monthly time frame showing the most dramatic drop of 43 percent since January. In the last month, CRV has lost 31% of its value.

The on-chain analysis tool provided by CoinMarketCap is also showing red, suggesting that a powerful bear is currently controlling the token’s market circumstances.

Chart: TradingView

In addition, CRV is trading at a loss of $0.5048 right now. According to the technical indicators, widespread pessimism about the state of the market has set hold. Since CRV’s near $1 breakout, the RSI has not gone above 55.

The token’s negative price trend can also be explained by its close relationship with ETH. Both cryptocurrencies are highly correlated at 0.94 at this time. This implies that CRV’s price would fall in tandem with ETH’s if the latter’s fortunes worsened.

Will Curve Recover In The Coming Days?

The expansion of the Bollinger band indicates a significant increase in price volatility. This is a strong indicator on its own, but when combined with other variables, it may portend a further price decline in the coming days.

This is supported by the trendline and multiple candles indicating a strong downward swing for CRV.

Triple EMA numbers on the 20- and 30-day timeframes also indicate bearish strength. However, the situation reverses on longer durations.

This could be an indication that CRV will be fine in the long run. However, this is extremely unlikely because not only has the price of CRV decreased, but so has the TVL of the protocol.

According to DeFiLlama, the TVL decreased from $6.49 billion on November 7, prior to the FTX collapse, to $3.98 billion today. This is accompanied by a trading volume peaking at approximately $3.52 billion.

Curve will narrowly escape the current bear market crisis, if that is any consolation. However, investors and traders who anticipate enormous gains in the near future from this cryptocurrency should abandon such expectations.

A short position at the current market price would balance the price action and generate some extra income.

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

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.