Curve Finance Price Prediction: CRV Price Tanks After Attack

CRV price was on the rise since mid-June 2023, forming higher highs and managing to break past the support level of $0.565. Unfortunately, this upward trend was brought to a halt when the price found strong resistance at the $0.878 mark. As the cryptocurrency price ventured below the trend line, a slight correction of the bullish slope was induced. Soon after, the price moved downwards and hit a minor support near the $0.72m area. This short time frame saw the CRV rapidly consolidate near its support. Nevertheless, bearish power succeeded in overriding the positivity at $0.72, shaving off an estimated 14.25% of value on 30th July 2023.

It has been speculated, though there have been no official confirmations, that the cause of this price crash can be traced back to a major exploit of the popular DeFi platform. Reports from multiple sources reveal that a potential vulnerability in the platform’s programming language (Vyper) of version 0.2.15 was responsible for breaching the network, leading to the aforementioned market effects. Although version 0.2.15, 0.2.16, and 0.3.0 are reported to be weak due these malfunctioning reentrancy locks, speculations online have placed the roughly $20 Million worth of lost in stolen Ethereum, CRV, and other related assets.

As a consequence, traders have taken to token rivals such as Uniswap UNI in order to dwell away from Curve DAO until the instability resolves. According to reports, UNI saw an expectedly strong surge of 7.76%, whilst the Total Value Locked (TVL) of Curve Finance plunged gently from
3.2 Billion to 1.8 billion. Additionally, Aave TVL dropped from $5.85 and to $5.37 billion. Bullish pullbacks seemed scarce, with the market caps having reduced by more than 10% and the 24 hour trading volume bringing over 2, 006 rise. Interestingly, the pace of bearish momentum seemed consolidated due waning Chakin Money Flow (CMF) (-0.1 3) and Relative Strength index (RSI) dropping to a low all-time of -31.54.

Because the price broke the lower support of Bollinger Band, many have soared that the market might experience a short-term shift over to a “bullish mode”. With the majority positions (+51.11) coming in from the buyers’ side, it is fair to state that the personnel might be recovered with the same bull strength portrayed pre-market instability.

In summary, the aftermath of an exploit to the financial programing kangaroo of Curve Finance 0.2.15 version ought to be pre-acknowledged before trading either CRV-based tokens or related assets arising from “rival platforms”. Taking place Tuesday, 30th July 2023, the findings saw of colossal exploits render investors having to confront the turbulent wrath consisting of extremely high volatility and long/short approach.

Robert Wilson author
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