Is the collapse Coming? Tough Moves in Altcoin Attacked by Whales

Altcoin CRV is experiencing a significant price drop due to the recent developments in the protocol. The crypto ecosystem was rocked on July 31 when a DeFi exploit resulted in a $62 million loss of funds. Accordingly, the hack caused a crisis in the ecosystem. This event put Curve founder Michael Egorov at risk of liquidation of $100 million in CRV positions.

Increase in supply and highest holder sales in stock markets

The supply of altcoin CRV on crypto exchanges is growing steadily. Accordingly, whales have been reducing their presence since the beginning of August. These two factors are crucial in determining the direction of an asset’s price.

Curve Finance CRV Pool Image

The price of altcoin CRV dropped from $0.65 on July 31 to its current value of $0.46. DeFi token has come under constant selling pressure with the influx of CRV tokens on centralized cryptocurrency exchanges.

Santiment data points to danger in altcoin CRV

The data from the crypto intelligence tracker Santiment is interesting. Accordingly, it reveals that the supply of CRV on exchanges increased from 138.05 million to 148.46 million on Tuesday. This increase in altcoin CRV volume deposited in exchange wallets coincides with the top addresses reducing their DeFi token holdings.

Santiment’s data also points to a different situation. Accordingly, there is a decrease in the ratio of those who have a lot of altcoin CRV to the total supply. Accordingly, it has decreased from 75.47% to 71.75%.

Bear metrics on chain

These on-chain bearish metrics indicate the potential for further declines in the price of CRV. The $0.40 price level is particularly significant for the altcoin CRV. Because this is the level at which about a quarter of the circulating supply of the token is sold by its founder, Michael Egorov, to various crypto firms and influencers via “handshake agreements” to keep the tokens locked.

There is a possibility that these tokens will circulate or enter exchange wallets. Accordingly, this will further affect the price of the altcoin CRV. Crypto analyst Hsaka says some sophisticated organizations are moving their CRV assets to centralized exchanges. On the other hand, he states that this may explain the decrease in the price of Curve to $ 0.40.

Altcoin CRV movements continue

Andrei Grachev of DWF Labs announced that the global market maker has moved 2 million CRV tokens to Binance. Grachev expects more CRV entries from this organization for purposes other than sales. This development supports the argument for a long-term recovery for the price of altcoin CRV.

At the time of writing this article, the price of altcoin CRV is at $0.46 on Binance. Looking at Cryptokoin.com, we’ll see if the price drops to the $0.40 level, where Curve may face increased selling pressure and volatility.