The price of Curve Finance’s native token, CRV, has been falling precipitously in recent weeks as the bears have pounced. The present bear market has been relentless in its assault on traders and investors. As the FTX crisis continues to weigh on the cryptocurrency market as a whole, prominent cryptocurrencies like Bitcoin and Ethereum are likely to continue to feel the pain. Given the strong relationship between CRV and ETH, the latter is likely to suffer further declines in the near future. Related Reading: MATIC Backpedals Into Bearish Track Despite Its Social Dominance Latest Numbers: Steady Drop In Value According to CoinGecko’s numbers, the coin’s value has been steadily decreasing over the past few months, with the monthly time frame showing the most dramatic drop of 43 percent since January. In the last month, CRV has lost 31% of its value. The on-chain analysis tool provided by CoinMarketCap is also showing red, suggesting that a powerful bear is currently controlling the token’s market circumstances. Chart: TradingView In addition, CRV is trading at a loss of $0.5048 right now. According to the technical indicators, widespread pessimism about the state of the market has set hold. Since CRV’s near $1 breakout, the RSI has not gone above 55. The token’s negative price trend can also be explained by its close relationship with ETH. Both cryptocurrencies are highly correlated at 0.94 at this time. This implies that CRV’s price would fall in tandem with ETH’s if the latter’s fortunes worsened. Will Curve Recover In The Coming Days? The expansion of the Bollinger band indicates a significant increase in price volatility. This is a strong indicator on its own, but when combined with other variables, it may portend a further price decline in the coming days. This is supported by the trendline and multiple candles indicating a strong downward swing for CRV. Triple EMA numbers on the 20- and 30-day timeframes also indicate bearish strength. However, the situation reverses on longer durations. This could be an indication that CRV will be fine in the long run. However, this is extremely unlikely because not only has the price of CRV decreased, but so has the TVL of the protocol. According to DeFiLlama, the TVL decreased from $6.49 billion on November 7, prior to the FTX collapse, to $3.98 billion today. This is accompanied by a trading volume peaking at approximately $3.52 billion. Curve will narrowly escape the current bear market crisis, if that is any consolation. However, investors and traders who anticipate enormous gains in the near future from this cryptocurrency should abandon such expectations. A short position at the current market price would balance the price action and generate some extra income. Related Reading: Litecoin (LTC) Up 8% In Last 24 Hours, The Biggest Gainer Out Of Top 20 Cryptos CRV total market cap at $266 million on the weekend chart | Featured image from Forex Academy, Chart: TradingView.com
