CRV Resilience: Price Rebounds into Demand Zone

CRV Resilience: Price Rebounds into Demand Zone

fter a security exploit on Sunday, CRV, the native token of Curve Finance, a decentralized exchange known for stablecoins, has undergone a major bearish trend. In just three days, its price has dropped by almost 35%, falling from $0.74 to $0.482. 

CRV investors are feeling fearful due to a significant drop in the token's market capitalization. In just a short period, it has decreased by around $195 million, going from $644 million to $448 million today. This concerning situation arose after Curve Finance experienced a security exploit, resulting in a loss of nearly $47 million on July 30.

CRV Price Approaches Demand Zone, Source: Tradingview 

The price of Curve DAO token (CRV) has returned to a strong demand zone, as previously shown on the chart, and has started to recover slightly. However, buyers have made only limited efforts to reverse the trend following aggressive selling. Meanwhile, As of now, the CRV token is trading at $0.591, showing a 4.3% increase in value for the day.

The positive change follows the recovery of around $5.4 million worth of Ether (ETH), which has been returned to Curve Finance on Monday.

Source: Tradingview

The technical indicators haven't indicated any bullish signal for a significant recovery yet. The key simple moving averages (20, 50, 100, and 200) are considerably above the current CRV token price.

Both the Relative Strength Index (RSI) and the Stochastic RSI indicator remain in the extreme oversold zone. However, there's a chance of a potential bounce-back if the RSI starts to rise and goes above the 30 range.

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.