Key Takeaways:
- DEX spot and futures traders have intensified bearish bets on Curve DAO, with negative funding rates and increased short activity reflecting short-term pessimism.
- A $100M+ surge in Total Value Locked and $3.32M in CRV moved to private wallets indicate strong accumulation by long-term holders, hinting at a potential price rebound.
Curve DAO (CRV) has extended its month-long decline with a fresh 9.43% drop in the last 24 hours, bringing its total losses for the month to 11.3%. The bearish sentiment remains dominant, but behind the scenes, key market players are positioning for a potential rebound.
According to data from Artemis and CoinGlass, most of the current selling pressure is concentrated among DEX spot and futures traders. Approximately 300 traders reportedly paid a combined $26,000 in fees to exit or short their CRV positions, signaling intensified short-term bearish activity. This trend is further confirmed by the CRV OI-Weighted Funding Rate, which has flipped negative—suggesting that leveraged positions now favor the bears.
The metric, which combines open interest and funding rates, points to growing confidence among futures traders that prices could decline further. If the indicator dips deeper into negative territory, it could accelerate selling pressure and deepen the downturn.
However, not all cohorts are following the same script. Long-term investors appear to be quietly resisting the sell-off. On-chain data shows a notable $100 million increase in Total Value Locked (TVL) on Curve DAO, rising from $1.6 billion to $1.7 billion. This liquidity boost suggests investors are locking in their assets, a strategic move often associated with long-term confidence.
Additionally, spot accumulation activity has picked up. Over the past 48 hours, buyers have moved $3.32 million worth of CRV into private wallets, echoing a recent $100 million deposit by a whale investor into the Curve protocol. These moves reduce circulating supply on exchanges and help stabilize price action.
Also Read: Curve Finance Doubled Its Network Activity in 2024 – Can CRV Recover and Reach $1.5 in 2025?
Encouragingly, CRV’s liquidation heat map suggests potential for recovery. Liquidity clusters—zones where unfilled orders could pull price upward—extend up to $0.75, a bullish target zone if momentum shifts. While a slight dip remains possible due to limited liquidity below, the overall outlook hints at a near-term reversal.
Despite bearish dominance, strategic long-term positioning and accumulating liquidity signal that CRV may soon find a floor—potentially setting the stage for a rebound. Traders and investors alike will be watching closely for confirmation of this shift.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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