Curve Financing: There are a few factors to consider before jumping into any CRV trade

  • CRV’s price has increased by more than 100% since the beginning of the year.
  • Buyers can no longer support any further price rise as the uptrend weakens.

The price of Curve Finance’s CRV token has increased significantly, doubling in value since the start of the current bull cycle. Exchanging hands at $1.08 at press time, the alt is up 107% in the past 30 days, data from CoinMarketCap show up.

Read Curve Finance’s [CRV] Price forecast 2023-24

As the price of CRV soared, so did its daily trading volume. According to Santiment data, in the past month, CRV’s daily turnover has increased by 200%. The increase in daily trading volume over the past 30 days indicated an increase in the interest of the altcoin.

Sharks and whales see things differently

A significant increase in the price of CRV over the past month has led to a jump in the daily number of option transactions exceeding $1 million. An increase in options transactions for a cryptocurrency is usually seen as a bullish sign and a sign of strong belief in continued price growth.

Source: feeling

An analysis of the distribution of CRV supply showed that the recent price hike was mainly driven by CRV token holders in the range from 1 to 10,000. This group has increased token accumulation, causing their numbers to increase by 2% over the past month.

On the other hand, larger stakeholders holding between 10,000 and 10,000,000 CRV tokens reduced their holdings during the period under review. According to Santiment data, at the time of writing, this group accounted for 12.53% of the circulating supply of CRV. A month ago they had 13.23%.

Source: feeling

Closer than you think

According to information from coinglass CRV’s open interest has declined over the past seven days. At $58.56 million at the time of writing, CRV’s open interest is down 15% in the past week.

Is your wallet green? Check out the CRV Earnings Calculator

A decrease in open interest for crypto assets generally means that fewer contracts for futures trades for that cryptocurrency have been bought or sold.

It may indicate a decline in market demand and investor interest. This price disadvantage usually follows diminishing demand.

Source: Coinglass

Another assessment of CRV price movements on the daily chart showed that the main indicators of the Relative Strength Index (RSI) and Money Flow Index (MFI), were associated with overbought peaks.

These situations are usually characterized by buyer fatigue as they find it difficult to initiate further price hikes. At the time of publication, the RSI is at 69.31, while the MFI is at 79.32.

While many might be led to believe that the high price was definitive evidence of a continuation of the bullish trend in the market, a look at the Aroon indicator showed that the bullish trend in the market had weakened significantly.

At the time of publication, the Aroon Up line is in a downtrend of 42.86%. The Aroon indicator measures the strength of an uptrend by determining how far the recent high has been reached.

When the Aroon Up line is close to 100, it shows a strong bullish trend. On the other hand, if it is close to zero, the uptrend is weak and may indicate a possible trend reversal.

Source: CRV/USDT on TradingView

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