CRV Rises Independently Against the Trend, Will It Continue to Rise?

Recently, the entire cryptocurrency market has been in a sideways consolidation phase, with some even experiencing slight declines. Even the leading cryptocurrency Bitcoin has shown no significant movement and has been mostly consolidating. 

Cryptocurrency Total Market Cap (Red) and Bitcoin Price Chart (Blue), Source: MacroMicro.

However, in this unfavorable environment, the token CRV from Curve Finance has bucked the trend and shown an upward momentum.

According to data, CRV has recorded a 5.79% price increase over the past 24 hours, placing it at the second spot on the list of top gainers, surpassing the majority of other cryptocurrencies.

24-Hour Cryptocurrency Gainers Ranking, Source: CoinMarketCap.

Despite facing liquidity challenges, why is CRV rising against the trend? It's somewhat unusual and leaves people scratching their heads. 

Data shows that the founder of Curve Finance, Michael Egorov, has sold around 157 million CRV tokens through OTC deals to more than 50 institutions or investors, raising approximately $60 million in funds.

Amount of CRV Sold Through OTC, Source: Dune.

It's important to note that these CRV tokens are not directly entering the secondary market but are being sold at a discount to institutions or investors, with a certain lock-up period (Michael Egorov publicly mentioned about six months). 

This not only avoids short-term dumping but also diversifies the ownership, creating a community that collectively pushes up the CRV price. Otherwise, it would not benefit anyone. Therefore, these CRV holders can be seen as grasshoppers on the same rope, needing to cooperate to profit.

Furthermore, Andrei Grachev, the head of DWF Labs, has withdrawn 2 million CRV tokens from the Binance exchange to an on-chain wallet. This conveys the expectation of reduced circulating supply and reduces the likelihood of continued selling pressure, which can stimulate buying impulses among investors.

CRV-related Content Released by Andrei Grachev, Head of DWF Labs, Source: X.

From a technical standpoint, the 1-hour price chart of CRV has formed a W-shaped bottom pattern, indicating that the bearish double-bottom attempt was ineffective and did not establish a new low. 

The bulls have held their ground and are starting to dominate the market, with the potential for further upward movement, provided that Bitcoin continues to consolidate or rise.

1-Hour Price Chart of CRV Token, Source: TradingView.

It's important to note that if BTC weakens and falls below $25,000, the upward momentum of CRV may lose its driving force and could be influenced by the overall market sentiment, potentially leading to a third retest of the $0.4.