Key Takeaways
Derivative and on-chain investors recorded a major market outflow worth $138 million. Spot investors attempted to counter the sell-off with a notable buyback, but purchasing power remained weak.
Curve DAO [CRV] posted one of the steepest losses in the market over the past day, with its price falling 12%.
Both on-chain and off-chain data aligned, showing that while pressure mounts, expert spot investors are holding on.
AMBCrypto analyzes how this could play out for the token as it faces a critical downside hurdle.
CRV faces liquidity hurdle
The recent downturn intensified as more liquidity exited the market from long traders.
Liquidation data highlighted a sharp disparity between long and short positions, showing that for every $1 short liquidated, $70 worth of long positions were wiped out.
This drove Open Interest down by $38.18 million to $300.69 million, mostly from long investors cutting exposure in an attempt to stay bullish, per CoinGlass.
Source: CoinGlass
Exchange analysis over the last day revealed that out of 20 exchanges, only five showed bullish sentiment for CRV, while the majority favored a downward move.
With most exchanges leaning short, the downward pressure is likely to continue weighing on price, forcing CRV into deeper losses.
On-chain protocol drives most outflow
On-chain investors led the exodus as Curve’s Total Value Locked (TVL) dropped sharply in the past day, according to DeFiLlama.
Data showed TVL fell by $100 million, sliding from $2.543 billion to $2.435 billion. This shift suggests investor sentiment has moved from long-term holding to short-term positioning.
Source: DeFiLlama
At the same time, decentralized exchange (DEX) activity revealed a sharp rise in selling pressure.
CRV’s 24-hour trading volume climbed to $338.39 million, up from a three-day low of $249.84 million.
Typically, a price decline alongside rising volume suggests that bearish momentum remains strong and further downside is likely.
AMBCrypto also found an interesting divergence: while the broader market stayed bearish, spot investors moved in the opposite direction.
Spot bets heavy on CRV
The spot market has been dominated by buyers accumulating CRV, a trend that has persisted for several days.
In the past four days alone, investors bought $13.91 million worth of CRV, while weekly accumulation held slightly above $8 million.
Source: CoinGlass
This accumulation trend indicates that, despite bearish conditions, investors view the decline as an opportunity to buy the token at a discount.
Many have moved their assets into private wallets for long-term holding.
However, unless spot market demand surges significantly, the persistent selling pressure is likely to keep dragging CRV’s price lower.
