- Curve DAO token has been incremental from the past couple of days resulting in a gigantic jump of more than 80%, firmly heading to reach $1 at the earliest.
- The CRV price closed the previous day’s trade at $0.68 with a market capitalization of $361.83 million and a circulating supply of 531.58 million CRV.
The curve is a decentralized exchange for stablecoins and uses an Automated market maker (AMM) to manage liquidity. The platform registered significant growth in 2020 and later it launched a Decentralized autonomous organization (DAO) with the native token CRV. The DAO connects multiple smart contracts using the Ethereum-based tool Aragon to deposit liquidity.
The token registered one of the highest rises in trading volume in the past couple of days, propelling the price beyond $0.7. Meanwhile, the bear may remain off-shore for a while which may pave way for the bulls to uplift the price to some extent.
- The Curve DAO token price which had dropped by nearly 58% in the past couple of weeks, rose significantly which is believed to be a result of a short squeeze.
CRV war was played out on #Aave yesterday and ended with the longer defeating the shorter.
— Lookonchain (@lookonchain) November 23, 2022
Curve DAO Token Price ANALYSIS
- The CRV price has been trading within a descending triangle ever since it faced rejection at $1.5 back in August.
- However, during the recent market crash, the price fell below the lower support, which was subsequently revoked with the recent price increase.
- The volume is expected to remain within its initial ranges and hence the price may consolidate above the lower support for an extended period.
- If the bearish wave strikes again, the price may pierce through the lower support and test the pivotal lower bands at $0.4.
- A bounce at these levels is critical, or else bearish pressure will drag the price lower to the last line of defence at $0.33.
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Dipping Supply on Top Addresses
The Supply held on the top address implies the whale holdings or the addresses of the long-term holders with a huge balance. The increase in these addresses undoubtedly indicates the mounting confidence in the project but the volatility is hampered to a large extent. The volatility is created due to the retail traders as whales & long-term holders tend to hold the asset for a long time.
The supply on the top address here has been dropping significantly for quite a long time which could imply a drop in whale accumulation. Meanwhile, it may be considered bullish to some extent as the retail traders may have a large share of holding which is required to keep up the volatility of the token.
Increasing supply on exchanges
The availability of tokens on the platform to carry out our buy or sell trade is referred to as supply on exchanges. A high availability of the token usually indicates that traders are willing to liquidate their positions, whereas a low rate indicates that traders intend to hold the token for a longer period of time. Meanwhile, supply indicates the availability of liquidity on the platform.
The supply on the exchanges has varied greatly but has remained on an upward trend. It indicates that the supply has been dropping and rising significantly due to competition between short and long traders. Presently, the supply has plunged heavily, which could be a bullish signal but may also impact the value of the token by limiting the availability and raising the demand.
The Curve DAO token (CRV) has risen significantly high, but it rather appears to be a minor & short-term bounce. Meanwhile, if the fight between the short & long prevails, CRV token price may eventually witness yet another spike. Besides, a drop in supply on exchanges and in the top address is flashing bullish signals. Hence, the CRV price may be due for yet another larger move ahead.
Prices as on 24 November, 2022.
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