CRV Price Tanks After Attack

CRV price was in an uptrend since mid-June 2023, forming higher highs, and has been rising from the support level of $0.565. The move was halted as the price faced strong rejection from the $0.878 level. The cryptocurrency price broke the trend line and corrected the bullish move. Recently, the price retraced and formed a minor support near $0.72.

Curve Finance price consolidated near $0.72 in a smaller time frame. However, the previous candle gained enough bearish momentum to shatter $0.72. CRV melted roughly 14.25% on 30 July 2023.

Curve DAO Under Attack

The top decentralized exchange has undergone a price crash due to a major exploit on the DeFi platform caused by a vulnerability in the programming language. Vyper, the programming language of Curve Finance, 0.2.15 version was exploited on 30 July 2023 which led to a drastic price crash. The versions 0.2.15, 0.2.16, and 0.3.0 are vulnerable to malfunctioning reentrancy locks.

After the release of news regarding exploitation, Curve DAO faced strong selling pressure. The attackers managed to take around $20 Million worth of CRV and a version of Ether.

The million-dollar exploit has caused traders to pivot toward the rival Uniswap’s UNI token. The Uniswap price has already soared by 7.76%. The total value locked (TVL) of Curve Finance has declined to $1.8 Billion from $3.2 Billion following the hack.

AAVE TVL has also declined to $5.37 Billion from $5.85 Billion. The market capitalization fell by 10.59% to $575,320,166. The 24-hour trading volume has surged by 2206.35%.

Will CRV Price Continue Falling?

The cryptocurrency price is trading below all the major exponential moving averages, suggesting bearish momentum. Chaikin money flow (CMF) score has dropped to -0.10 indicating weakness in the market.

However, CMF has recovered from -0.25 suggesting that bulls have started to enter the market to protect the price from further downfall.

The relative strength index (RSI) is currently trading at 31.54, rising after entering the oversold zone, implying that there is a strong presence of bears in the market. The Bollinger bands have expanded indicating a rise in volatility. The price has crossed the lower band of Bollinger and has started showing signs of a short-term pullback.

The long/short ratio is 1.04 with 51.11% longs and 48.89% shorts indicating bulls have entered the market and there is a higher number of positions from buying side in the last 24 hours.

Conclusion

The market structure and price action of Curve Finance have turned bearish after the release of news regarding the exploitation of Curve Finance.

Technical Levels

Major support: $0.63 and $0.57
Major resistance: $0.72 and $0.85

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.