Key Takeaways
- CRV crypto drops over 15% after Curve Finance’s $45 million hack.
- The second Curve Finance exploit since August 2022.
- Previously, CRV coin prices dropped over 70%, raising similar risks in the current scenario.
YEREVAN (CoinChapter.com) — Curve Finance (CRV) coin price has dropped over 50% from its year-to-date high of $1.29 in February 2023. And it appears the token will suffer more in the coming months.
CRV Selloff Risks Mount after $47M Hack
The trouble began for CRV after its parent Defi network, Curve Finance, lost $47 million in a security exploit on July 30. Since then, the token has declined by over 15% and, as of July 31, was changing hands for $0.63.
That marks Curve Finance’s second hack in less than a year. Notably, in August 2022, the Defi protocol lost about $570,000 after attackers compromised the front end of its liquidity pool. That hurt CRV’s upside prospects, with the token declining by around 70% afterward.
Other factors contributed to the Curve Finance’s price decline, including the collapse of Sam Bankman-Fried’s FTX exchange. Such catalysts no longer exist, barring lawsuits targeting crypto exchanges Binance and Coinbase, which may have wider implications on the crypto market.
Nonetheless, CRV risks witnessing an investment outflow after repeatedly being at the receiving end of hackers. Or, the market will ignore this extraordinary event altogether, according to analyst LilMoonLambo.
So $CRV got hacked over the weekend?
— Posty (@PostyXBT) July 31, 2023
Lets start our week with a degenerate play then
Thesis is that people will forget about this by tomorrow pic.twitter.com/fanUWfmQpG
Curve Finance Price Prediction 2023
From a technical perspective, CRV risks dropping massively in 2023.
Notably, the Curve Finance token has declined inside a descending channel pattern since January. Most recently, it tested the channel’s upper trendline as resistance and pulled back by 30%. Its next downside target appears to be the lower trendline in the $0.40-0.48 range, down circa 35% from current price levels.
Conversely, CRV’s daily relative strength index (RSI) stands “oversold” after dropping below 30. Theoretically, it means the price could consolidate sideways or recover in the coming days. Should it cover, the upside target appears to be around $0.70, up 12.5% from current price levels, in August 2023.
