• The spot CVD saw a bounce on 31 July when CRV buyers tried to defend the $0.61 level, but the metric took a nosedive when the buyers failed, showing bearish sentiment prevailed.
• CRV has been in a higher timeframe downtrend since April and the recent developments showed further losses were likely.
• Despite the bounce from $0.5 to $0.6 in recent hours, the outlook remained bearish for CRV token and it has support at the $0.5 mark, which had previously been tested in November and December 2022.
CRV Prices Tumble Following Exploit
The spot CVD saw a brief bounce on 31 July as CRV buyers attempted to defend $0.61; however, it quickly took a nosedive when buyers failed to do so, demonstrating that bearish sentiment still prevailed in the market. Since April of this year, there has been an ongoing downtrend seen in CRV’s higher timeframe charts and recent developments have shown that even more losses may be ahead for Curve Finance [CRV].
Bearish Market Sentiment
Investor sentiment was extremely fearful after Vyper bug was exploited on 30 July resulting in an estimated loss of around $70 million worth of funds drained from liquidity pools within Curve Finance [CRV]. The possibility that Curve Founder could get liquidated also added to this fear-driven market environment causing prices to spiral downward over past few days despite attempts by CRV buyers to protect their assets with slight bounces here and there.
A 4-hour chart analysis revealed that market structure shifted into bearish mode on 17 July after CRV fell below $0.8 level which was highlighted by an orange line as seen above. This shift downwards continued for two weeks until eventually hitting prices at around $0.64 with both RSI and Awesome Oscillator displaying heavy downward momentum throughout this period until present day where we’ve seen some slight recovery attempts from those attempting to buy back their tokens near current market prices of roughly around 0$.5 – 0$.6 range per one token depending on exchange used for trading purposes
In terms of support levels for Curve Token [CRV], there are two major areas identified so far – first being near 0$.5 mark which had already been tested during months of November & December 2022 followed by second area located near 0$.32 range which last time proved itself as strong support during October & November 2020 periods before pushing prices up again afterwards despite any sort of negative news or trends present during those times as well .
Open Interest Rising
Lastly, Open Interest (OI) is following closely behind these events as speculators jump onto bandwagon trying either capitalize or protect themselves against possible price action happening next – only time will tell if these strategies prove successful or not .