Curve Finance: Could CRV stay with the bears for a longer period of time than expected?

Curve Finance [CRV], which had previously performed well, had lost 30.95% of its value in the last thirty days. At press time, the coin was trading at $0.526 on CoinMarketCap.

The data revealed the on-chain liquidity provider token’s lacklustre state, as its 24-hour performance was nothing near an outstanding quality. According to the price tracking platform, CRV had lost 3.61% of its value from the previous day. But, despite this horrible presentation, was there anything for CRV investors to look forwards to?

No way ahead yet

According to the four-hour chart, there was no clear path for CRV to exit the nemesis it currently showed investors. This inference was due to the position displayed by the Exponential Moving Average (EMA). At press time, the 20 EMA (blue) was below the 50 EMA (yellow).

This stance indicated signs of CRV to remain in the reds. So, it was highly probable that CRV would stay bearish in the short term. However, indications from the 200 EMA (purple) was that of respite in the long term.

As it maintained its spot on both the 20 and 50 EMA, CRV long-term holders can expect that losses incurred won’t last if they stay patient enough.

Curve Finance (CRV) price action

Source: Santiment

Despite the positive, short-term investors might have to live with the bearish indicators. Based on the above chart, the Relative Strength Index (RSI) showed that CRV’s momentum was a seller-controlled one.

With the RSI at 32.48, the indicator stood in the oversold zone. While it might be expected that a reversal was in motion, it was not the case. This was because the On-Balance Volume (OBV) displayed an uninspiring liquidity flow at 93.36 million.

Thus, the most likely state for CRV to choose might be to abide in the bearish region.

Of TVL standing and network shenanigans

Per its Total Value Locked (TVL) status, CRV was in position to impress. According to DeFiLlama, the TVL was worth $3.78 billion at press time. Like the price, the TVL represented a 33.62% decline in the last thirty-days.

Notably, CRV, which was in competition for the first place on the DeFi standings, was in a far fight. This indicated that investors had deposited very little into the liquidity pool on the Curve chain during the period.

CRV Total Value Locked (TVL)

Source: DeFi Llama

Furthermore, an assessment of its on-chain showed that the network growth had gone from being stunted to decrease. According to Santiment, the network growth had shrunk to 305.

This reflected that new addresses failed to interact with the Curve network. For the 24-hour active addresses, Santiment showed that it decreased to 1129. This meant that fewer deposits had been made via the Curve network when compared to 18  and 19 November.

CRV network growth and active addresses

Source: Santiment

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