Curve (CRV), which was hacked at the end of July and has been declining since then, continues its trend. The Binance-centered sell-off of recent days has made the situation even worse for the altcoin price. Analysts point to the ultimate support level that bulls must defend.
Curve (CRV) price records $0.40: Altcoin bulls were early
After the founder of the altcoin project, Michael Egorov, rolled over his over-the-counter (OTC) purchased CRVs in the early hours, the price of CRV fell below $0.40. Blockchain security company Peckshield stated that Egorov transferred 609,000 of the 2.5 million CRV he bought for one million USDT in early August to the counterparty named “0xb0b8” via Binance.
Lookonchain data analysis platform stated that investors who bought CRV at $ 0.40 are currently losing money. However, it is currently unclear why the transfer was made. Although prices recovered slightly after a few hours, the OTC side transferred back 609,000 CRV, the data shows. The altcoin is currently trading just above the critical support level at $0.4061
The price of $CRV has dropped below $0.4, and investors who bought $CRV from Michael Egorov at $0.4 are currently at a loss.
Investor"0xb0b8" who spent 1M $USDT to buy 2.5M $CRV deposited 609,057 $CRV ($240K) to #Binance an hour ago.https://t.co/cfcSvCPil9 pic.twitter.com/3XjdtSkHuY
— Lookonchain (@lookonchain) September 13, 2023
Founder Egorov sold 106 million CRV in early August to reduce potential liquidation risks. This means 46 million dollars in fiat terms. Egorov is selling to reduce his debt on various DeFi altcoin platforms and mitigate liquidation risks.
Investors are intensifying their sell orders
After Michael Egorov’s remarkable trades, CRV investors increased their sell orders. According to the data, many orders were placed before the liquidation price of $0.371. According to data obtained from 17 major exchanges, especially Binance, Kraken and Coinbase, altcoin investors went into intense selling before the liquidation price.
According to published data, there are currently 53.2 million CRV active sales orders. The majority of investors plan to sell 27.7 million before the price drops 10% to $0.36. These sell orders greatly exceed the 23.5 million CRV buy orders available at the same price levels.
The on-chain market depth chart shows the distribution of CRV orders currently valid on well-known crypto exchanges. Investors considering selling are 4.2 million more altcoins ahead of those considering buying. Unless there is a statement from Egorov, CRV’s approach to liquidation price will further reduce purchasing pressure.
What’s next?
However, according to analysis, the chances of the altcoin price falling to zero in the near future are quite low. Strategic investors placed a buy order of 24 million tokens below the Curve debt liquidation price. If these investors enter the market to buy the dip, a rally is in store. Thus, the Curve Finance DeFi ecosystem will remain vibrant. Considering the sales and purchase dynamics, we may see balancing in the market in the coming period. You can take a look at what happened in July, as reported by Kriptokoin.com, in this article.
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