Curve Finance’s native token, CRV, has recently experienced a notable increase in value, driven by a sudden surge in whale accumulation. As the decentralized finance platform (DeFi) token rebounds from its November 2022 low of $0.4, crypto enthusiasts are wondering if this momentum is enough to initiate a sustained bullish trend for CRV.
This weekend cryptocurrency tracker Lookonchain detected an interesting activity involving two important whales. The first whale staged a substantial withdrawal and amassed a whopping 19.56 million CRV tokens worth around $10.33 million from the popular crypto exchange Binance.
What makes this move even more intriguing is that the whale has staked the entire amount on Convex Finance (CVX), a DeFi platform intricately designed to allow Curve users to improve their rewards.
Not to be left behind, another whale conducted a withdrawal of 5.78 million CRV tokens, worth over $3 million, from Binance on Sunday, further piqued the crypto community’s curiosity.
Whale “0xQf14” withdrew 5.12 million $CRV($2.7 million) from #Binance already 6 hours ago.
And the whale has withdrawn a total of 19.56 million $CRV($10.33 million) from #Binance in the past 3 days.
The whale risked everything $CRV on #Convex.https://t.co/eSOmZSlmk8 pic.twitter.com/8fXj2VVk3T
— Lookonchain (@lookonchain) September 25, 2023
Resistance looms, but the potential for CRV remains
The current price of CRV at Coin gecko is at $0.515, reflecting a decline of 0.1% in the past 24 hours but showing a promising seven-day gain of 16%.
Despite the upside, CRV is currently facing a resistance zone near $0.55, which could possibly be attributed to short-term traders taking advantage of their gains.
In the event that supply pressure increases, this altcoin could experience a small pullback, possibly falling to levels around $0.5 or even $0.45, while regaining its bullish position.
CRV market cap currently at $459 million. Chart: TradingView.com
If the ongoing recovery trend maintains its momentum, CRV’s price will rise according to a price reportcould aim for another notable increase, targeting a 10% increase to challenge the upper threshold of a long-standing channel pattern.
Taking a step back to assess the broader picture, the CRV token has endured a prolonged correction phase, trapped in a descending channel pattern that has persisted since February 2023.
Implications for the future
As CRV navigates the currents of the crypto market, the recent increase in whale accumulation adds a layer of anticipation to its journey. Whether this accumulation is indicative of a more sustained bullish run remains to be seen as the token struggles with resistance levels and supply dynamics.
Nevertheless, the evolving dynamics around CRV underscore the ever-evolving nature of the cryptocurrency space, where market sentiment and investor behavior can quickly change the price of a digital asset.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
Featured image from iStock
