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CRV prices spiral downward after exploit, is a recovery in sight

2min Read

The spot CVD saw a bounce on 31 July when CRV buyers tried to defend the $0.61 level, but the metric took a nosedive when the buyers failed, showing bearish sentiment prevailed.

CRV prices spiral downward after exploit, is a recovery in sight

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • The sentiment was strongly bearish for Curve token in the lower timeframes.
  • CRV has been in a higher timeframe downtrend since April, and the recent developments showed further losses were likely.

It was bad news all around for Curve Finance [CRV] after the Vyper bug was exploited on 30 July. The attackers focused on Curve Finance liquidity pools and an estimated $70 million of funds were drained.


Read Curve DAO’s [CRV] Price Prediction 2023-24


The possibility that the Curve Founder could get liquidated meant investor sentiment was extremely fearful in the CRV market. The price action of the past few days reflected this as well.

CRV saw a strong bounce from $0.5 but that might not show a recovery

Curve DAO [CRV] prices en route to a recovery after exploit?

Source: CRV/USDT on TradingView

The 4-hour chart showed the market structure shifted bearishly on 17 July after CRV fell below the $0.8 level. It was highlighted in orange on the chart above. Since then, the token continued to spiral downward. Two weeks later it was trading at $0.64, and took another tumble after sustained selling pressure on 31 July.

The RSI has been below the neutral 50 mark since 17 July to show bearish momentum was strong. Over the past two days, both the RSI and the Awesome Oscillator showed heavy downward momentum in the CRV market.

Despite the bounce from $0.5 to $0.6 in recent hours, the outlook remained bearish for CRV token. It has support at the $0.5 mark, which had previously been tested in November and December 2022. Further south, the $0.32 support from October and November 2020 could see a positive price reaction.


Is your portfolio green? Check the Curve DAO Token Profit Calculator


The rising Open Interest showed speculators flooding into the market

Curve DAO [CRV] prices en route to a recovery after exploit?

Source: Coinalyze

In the past 48 hours, the previously dormant Open Interest chart spiked swiftly higher. For a majority of this time Curve DAO token took losses on the chart. During the bounce from $0.5 in the past few hours, the OI continued to rise. Does this show a shift toward bullish sentiment for speculators?

The spot CVD saw a bounce on 31 July when buyers tried to defend the $0.61 level, but the metric took a nosedive when the buyers failed. This showed that sentiment was bearish, and buyers must be cautious.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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