Curve [CRV] can see deeper losses unless THIS rises dramatically
High liquidity outflow from CRV puts the price under major threat.
Key Takeaways
Derivative and on-chain investors recorded a major market outflow worth $138 million. Spot investors attempted to counter the sell-off with a notable buyback, but purchasing power remained weak.
Curve DAO [CRV] posted one of the steepest losses in the market over the past day, with its price falling 12%.
Both on-chain and off-chain data aligned, showing that while pressure mounts, expert spot investors are holding on.
AMBCrypto analyzes how this could play out for the token as it faces a critical downside hurdle.
CRV faces liquidity hurdle
The recent downturn intensified as more liquidity exited the market from long traders.
Liquidation data highlighted a sharp disparity between long and short positions, showing that for every $1 short liquidated, $70 worth of long positions were wiped out.
This drove Open Interest down by $38.18 million to $300.69 million, mostly from long investors cutting exposure in an attempt to stay bullish, per CoinGlass.
Exchange analysis over the last day revealed that out of 20 exchanges, only five showed bullish sentiment for CRV, while the majority favored a downward move.
With most exchanges leaning short, the downward pressure is likely to continue weighing on price, forcing CRV into deeper losses.
On-chain protocol drives most outflow
On-chain investors led the exodus as Curve’s Total Value Locked (TVL) dropped sharply in the past day, according to DeFiLlama.
Data showed TVL fell by $100 million, sliding from $2.543 billion to $2.435 billion. This shift suggests investor sentiment has moved from long-term holding to short-term positioning.
At the same time, decentralized exchange (DEX) activity revealed a sharp rise in selling pressure.
CRV’s 24-hour trading volume climbed to $338.39 million, up from a three-day low of $249.84 million.
Typically, a price decline alongside rising volume suggests that bearish momentum remains strong and further downside is likely.
AMBCrypto also found an interesting divergence: while the broader market stayed bearish, spot investors moved in the opposite direction.
Spot bets heavy on CRV
The spot market has been dominated by buyers accumulating CRV, a trend that has persisted for several days.
In the past four days alone, investors bought $13.91 million worth of CRV, while weekly accumulation held slightly above $8 million.
This accumulation trend indicates that, despite bearish conditions, investors view the decline as an opportunity to buy the token at a discount.
Many have moved their assets into private wallets for long-term holding.
However, unless spot market demand surges significantly, the persistent selling pressure is likely to keep dragging CRV’s price lower.
