Increase in Curve DAO by 15% raises questions about potential decline: Will the price stabilize at $0.86 or drop to $0.70? future prospects for CRV examined
In a significant development for the cryptocurrency market, Curve DAO (CRV) has experienced a notable price upswing, driven by several key factors. The altcoin's market capitalisation spiked 14% to $1.08 billion, and the momentum indicators suggest that markets are bullish, with the trend likely to continue.
1. Technical Breakout and Momentum
CRV recently broke out above a long-term descending resistance or triangle pattern, an important technical milestone that often signals sustained upward momentum. This breakout has pushed the price above key resistance levels, fueling optimism for a potential price increase of up to 70-80% from the breakout point, possibly surpassing $1.30 per token.
2. Scarcity and Reduced Exchange Supply
A major driver behind CRV’s rally is the growing scarcity of tokens available on exchanges. Recently, exchange net outflows of CRV hit -2.67 million, meaning significantly more tokens are being withdrawn from exchanges than deposited. This reduction in readily tradable supply creates a supply squeeze, limiting selling pressure and contributing to upward price pressure.
3. Whale Accumulation and Holding Behaviour
Whales hold a large portion of CRV’s circulating supply—about 54.25%—which effectively reduces liquidity and inhibits large-scale sell-offs. Additionally, the stock-to-flow ratio has reached an all-time high (around 71.68), indicating that investors are increasingly holding onto their tokens rather than selling, which further tightens supply and supports price gains.
4. Stable DeFi Fundamentals
Curve's protocol fundamentals remain sound with a high total value locked (TVL) at $2.55 billion and over 65% of the market cap staked, reinforcing a limited circulating supply that supports the token’s intrinsic demand and scarcity-driven price trends.
5. Recent Performance and Market Sentiment
Over the past week, CRV skyrocketed by over 79%, with a 28% surge in the last 24 hours alone. The strong trading volume (up 72.78%) and a rising Relative Strength Index (RSI) entering an overbought zone confirm increased buying interest and positive market sentiment around CRV.
In summary, CRV’s recent price upswing is backed by a strong structural shift towards scarcity and investor confidence, making the rally appear sustainable beyond a speculative spike. However, CRV must record a daily close above 0.77 after the flip; anything below would invalidate this uptrend and retrace to $0.70. The volume rising alongside market cap reflects growing on-chain activity and massive capital flow, with such market behavior historically preceding higher prices.
- The price increase of CRV might reach up to 70-80% from the breakout point, driven by a technical breakout above a long-term descending resistance.
- CRV's rally is being fueled by a decrease in the number of tokens available on exchanges, resulting in reduced exchange net outflows and a supply squeeze.
- Whales, who hold a large portion of CRV's supply, are contributing to the upward price pressure by exhibiting increased holding behavior, indicated by a high stock-to-flow ratio.
