Curve Dao price searches for market bottom while CRV whales continue to dump
|- Curve DAO price may struggle to hold around the current level as selling pressure continues to mount.
- On-chain data shows that breaking below the $0.34 support level could lead to a correction towards $0.24.
Curve DAO is facing an uphill battle after falling more than 99.3% over the past three months. While the DeFi token appears to be searching for a market bottom, CRV investors continue to offload their holdings, increasing the downward pressure.
CRV whales offload their tokens
As the bloodbath in the DeFi market sector continues to unravel, Curve DAO does not seem to be able to escape from it. This cryptocurrency recently lost all the gains incurred in the 80% upswing that took place on October 27. Consequently, annihilating all the bullish price predictions.
The mounting selling pressure behind CRV appears to be correlated with some of its core fundamental principles, according to Santiment's Holder Distribution data.
In a recent report, the behavioral analytics company affirmed that Curve DAO's tokenomics discourage buying it from the market. The primary purpose of this altcoin is to incentivize liquidity providers and get users involved in the protocol's governance. Thus, it seems more reasonable to obtain CRV tokens by being a liquidity provider on the platform.
Curve DAO Investors Vesting Address
Santiment also highlighted that vested addresses are responsible for a lot of the downward pressure behind this cryptocurrency. It appears that each time the "investors vesting address distributes CRV, the price tanks shortly after."
Therefore, Curve DAO price may continue to struggle from an on-chain metrics perspective until a new wave of interest hits the DeFi market sector.
Curve DAO price forecast
It is worth mentioning that this altcoin sits on top of weak support, based on IntoTheBlock's "In/Out of the Money Around Price" model. The IOMAP cohorts show that only 73 addresses had previously purchased nearly 62,000 CRV between $0.34 and $0.36.
Such an insignificant supply wall could break at any minute if sell orders continue to pile up. In the event of a steeper decline, Curve DAO price may look for support around $0.28 or $0.24.
CRV In/Out of the Money Around Price
Given the unpredictability of the cryptocurrency market, the bullish outlook cannot be disregarded.
A sudden spike in the buying pressure behind the DeFi token that allows it to turn the $0.36-$0.48 resistance into support may jeopardize the bearish scenario. Under such circumstances, Curve DAO's price could surge towards the next crucial hurdle at $1.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.