- Activity at dormant CRV addresses spiked for the first time since July, triggering an increase in accumulation.
- With increasing volume and more currency outflows, CRV’s price action could improve.
Curve DAO Token [CRV] may have had an impressive 5.93% gain in the past 30 days, but major long-term investors of the token seemed to think this is just the beginning. This sentiment was clearly reflected in the behavior of sharks known to hold between 1 million and 10 million CRV tokens.
How many Worth 1,10,100 CRVs todayyou?
Living to take risks on Curve
According to Santiment, the said cohort added another $9.5 million to CRV between October 12 and 13. The more interesting thing is that these sharks are not just the ones that are relatively operational in the market.
🦈 #Curve has seen another large accumulation day of sharks holding 1M-10M $CRV Coins. In just 24 hours, they added 9.5% more to their collection bags, worth $9.5 million. Much of this came from dormant wallets, which have been most active since July. https://t.co/VzZzmo4e3p pic.twitter.com/DT6E4lrm0H
— Santiment (@santimentfeed) October 13, 2023
Instead, some of the accumulation came from dormant addresses, driving these wallets’ activity to its highest point since July. An interpretation of this change is similar to that of Ethereum [ETH] where many addresses are switching from HODLing to trading.
For Curve, it is likely that these investors are trying to profit from increases in token value. In fact, the period of accumulation of these sharks has increased the CRV from $0.42 to $0.44. But could more happen for Curve in the short term?
One way to look at this is to examine volume alongside the price development. At the time of writing, CRV’s volume had increased to 38.15 million. As mentioned earlier, the price action also followed suit direction.
Typically, increasing volume with rising prices leads to a likely price increase, and indicates increased interest in a cryptocurrency. If volume continues to rise and CRV does not fall to profit-taking, it is possible that the token value will rise towards $0.50 in the coming days.
Source: Santiment
No chance for sellers yet
Another way to judge whether these sharks are making the right decision is to watch the activity exchanges. According to Santiment, CRV’s inflow at the time of writing was 35,200. This metric is the number of tokens sent from non-exchange wallets to exchange addresses.
In contrast, outflows on the currency markets were higher, at 55,500. The opposite of inflows, the exchange’s outflows, is the number of tokens sent out of the exchanges. It is also notable to note that in only one of the past weeks has the inflow exceeded the outflow.
Is your portfolio green? Check the Curve DAO Token Profit Calculator
Source: Santiment
A much larger outflow therefore means that there is a very small chance that CRV expects selling pressure. At least, if it is significant. This means that a large part of the market is optimistic about the CRV price promotion.
Provided that the inflows of the currency do not outweigh the outflows, Curve’s price has a high chance of resisting a downtrend.
