Curve DAO (CRV) has recently experienced a significant market downturn, marked by substantial outflows and a sharp decline in its price. This period of volatility highlights a critical struggle between sustained selling pressure and a surprising bullish counter-trend from spot investors.
Intensifying Bearish Momentum and Liquidity Drain
The token's value plunged by 12% in a single day, driven by a massive $138 million outflow from derivative and on-chain investors. This sell-off was exacerbated by severe long liquidations, where for every $1 short liquidated, $70 in long positions were wiped out. This dramatic reduction in open interest, as long investors cut their exposure, aligns with a predominantly bearish sentiment across most exchanges, suggesting continued downward pressure on CRV's price.
On-Chain Exodus Amidst Spot Accumulation
On-chain data further reveals a significant investor exodus, with Curve's Total Value Locked (TVL) decreasing by $100 million, shifting sentiment towards short-term positioning. Decentralized exchange activity also showed a sharp increase in selling pressure, as rising trading volume coincided with the price decline, reinforcing strong bearish momentum. However, an interesting divergence emerged: while the broader market remained bearish, spot investors actively accumulated CRV. Over the past four days, spot buyers added $13.91 million worth of CRV, viewing the price drop as a buying opportunity for long-term holding. Despite this spot market resilience, the persistent selling pressure from other segments is likely to keep CRV's price suppressed unless spot demand surges dramatically.
