Key Takeaways:
- Mountain Protocol launched a USDM pool on Curve Finance.
- However, the CRV token price continued its downtrend.
- CRV price is moving inside a bullish pattern.
NEW DELHI (CoinChapter.com) — Mountain Protocol announced the launch of its USDM pool on the stablecoin-focused decentralized exchange Curve Finance.
USDM is the Mountain Protocol’s stablecoin offering. The platform claims that USDM is the first permissionless yield-bearing stablecoin with regulatory clarity (the Bermuda Monetary Authority licensed the firm as a digital asset issuer).
During the token’s launch in Sept. 2023, Mountain Protocol claimed that the USDM was fully backed by “short-term U.S. Treasuries, with the difference that USDM provides users daily rewards in the form of rebasing, currently at a rate of 5% APY.”
The protocol stated that users would have to pay low transaction fees for purchasing or redeeming USDM. Furthermore, the Mountain Protocol team said the pool opened an avenue for traders “to access the ‘risk-free rate’ (5% APY) in DeFi.”
In addition, the USDM issuer stated that Curve Finance’s crvUSD would be the liquidity hub for Curve Finance, which is why the protocol paired USDM with the CDP stablecoin.
The pool would help non-US investors gain exposure to US Treasury bond yields. Data from Curve Finance showed that the pool attracted over $7,900 in volume in 24 hours. The pool has about $1 million in currency reserves, with crvUSD accounting for over 61% and the rest in USDM.
CRV Price Fails To Respond To USDM Pool Launch News
Crypto tokens usually react positively to news like product launches or partnerships, thanks to buyers entering the market due to the hype.
However, despite the announcement, Curve Finance’s CRV token’s price continued to bleed for the fourth consecutive day, returning WTD losses of 11.6% to reach a daily low of $0.42 on Oct. 12.
The downtrend was likely the result of FUD from the Israel-Hamas conflict, which has brought down the wider crypto market. If the downtrend continues, CRV price might fall to the support near $0.417.
Moreover, breaching the immediate support could force the crypto token price to test the support near $0.4, pushing the CRV price dangerously close to its lowest level since November 2022.
However, the increasing supply of Tether’s USDT on exchange indicates a buying sentiment among market participants. A wider market rally could help prop up the CRV price, rallying the token price to support near $0.45.
Furthermore, breaking and consolidating above the immediate resistance might help the Curve Finance token price reach the 20-day EMA (red wave) resistance near $0.47.
The RSI for CRV remained neutral, clocking a score of 33.86 on the daily charts.
CRV Moving Inside A Bullish Pattern
However, all is not lost for CRV since the token’s price is moving inside a bullish technical pattern called the ‘Falling Wedge.’
The technical pattern forms due to price moves that allow a horizontal trendline to connect the swing highs and a rising trendline to connect the swing lows. The price target for the pattern is equal to the triangltriangle’s at its widest part.
Thus, if the triangle pattern pans out, CRV price could rally 487.5% to reach the theoretical price target near $2.5.
