The support at $0.39 has just collapsed and Curve DAO is in the middle of a thunderstorm! 📉⚡️
Family, buckle up because what is happening with CRV is not just a stumble; it's a combination of factors that have investors scratching their heads and whales shedding ballast. While the crypto market in general dipped a bit, Curve took a much harder hit, falling more than 6% in a single day. Why does it hurt so much? Here I present the raw data.
If we look at the 4-hour chart in front of us, the situation is critical. The price has just breached a very important horizontal white support line that had been holding since mid-January. That giant red candle you see at the end, with a long wick downwards, tells us that there was a brutal selling panic. We broke the 7 and 30-day moving averages, and when that happens, trading algorithms go crazy selling automatically. The RSI is at 41, which means there is still room to continue dropping before we can say it is 'cheap'.
But be careful, the drama is not just technical. In the kitchen of Curve (its DAO), things are heating up. A proposal was voted to release $6.8 million dollars to improve its lending and liquidity tools (Llamalend V2), and the community said NO! 🚫 54% voted against it. This leaves a bitter taste because, although it shows that the token holders are looking after the funds, it also leaves us wondering if Curve will become stagnant while other protocols continue to innovate in this 2026.
To top off the combo, whales are capitulating. Imagine that a wallet linked to an old hack started liquidating tokens, and another large investor who had held 5 million CRV since last year decided to throw in the towel and sell 4 million, assuming a loss of almost 750 thousand dollars. 🐋💨 When the 'big fish' accept losing that amount of money just to get out, the sentiment of fear spreads quickly.
Right now, Curve is struggling not to fall below $0.38. With no fresh money for development and whales fleeing, the outlook looks bleak. Are we facing a buying opportunity due to capitulation, or is this the beginning of a prolonged winter for one of the pillars of DeFi?\u003cc-46/\u003e
