Key Takeaways:
- Curve DAO token CRV price traded sideways for the previous 5 days.
- The coin risks another 40% drop before 2024.
- On-chain metrics add to the bearish expectations.
YEREVAN (coinChapter.com) – Curve DAO token (CRV) price inched up 2% to $0.45 on Sep 21 after consolidating sideways for the previous five days. However, the bears could send CRV 40% lower by 2024. Here’s why.
CRV price action in a descending channel
CRV has traded in a formation dubbed the ‘descending channel’ since early February. The setup entails two down-sloping parallel trendlines that prevent sharp moves in either direction. CRV has repeatedly retested the support and the resistance and traded within the mid-range since the exploit on Aug 1.
The descending channel does not predict a bias after CRV breaks the pattern. However, it could be instrumental in determining future price fluctuations. The trading volumes have been declining since early August, along with the Curve DAO token price, which suggests further depreciation.
If another leg down follows, the channel’s support at approximately $0.27 would be the likely price target – a 40% drop for CRV.
As of the European session, the token inched above its 20-day exponential moving average (20-day EMA; red wave). However, the on-chain metrics hint at a bearish continuation.
Curve on-chain metrics hint at another drop.
Curve DAO whales have been unloading their stash since early August. According to an on-chain data provider, Santiment, holdings in top CRV wallets waned from over 80% in June to 76% on Sep 21. Typically, when whales dump a coin, smaller players on the market might follow, thinking that larger addresses ‘know better.’
Moreover, the Curve DAO token supply on exchanges doubled in the previous two months and stood at 7.7% on Sep 21. Generally, a heightened supply of tokens on exchanges could mean that holders look to dispose of their CRV.
