Curve Finance suffered a security exploit that caused the price of the CRV token to drop significantly. Investors wonder if a rebound is possible in the near future for Curve DAO Token (CRV). Here are the support levels to watch!
Curve shaken by an attack and a drop in the CRV token
Curve Finance has recently come under a major attack. This resulted in the embezzlement of millions of dollars in cryptocurrencies. The losses related to this attack are estimated at 52 million dollars, according to the latest news. The platform’s native token, CRV, suffered a loss in value of 16.42% in the past 24 hours, according to Coinmarketcap.
Curiously, despite this attack, the CRV/KRW pair listed on Bithumb saw a dramatic rise of 500% yesterday. However, this rise was followed by a 57% drop today on the same platform, and Curve (CRV) price is currently around 2500 KRW. The volatility could be explained by the impact of the reentrancy attack on some Curve stablecoin pools.
A possible rebound, but persistent bearish signals
If the situation is not quickly brought under control, the Curve DAO (CRV) token could continue to decline. Currently, the CRV/USD pair on TradingView is trading around $0.50, approaching the low of $0.4011. On the weekly chart, we notice a break of the support at $0.5365, suggesting a downtrend.
Indicators also show signs of concern. Indeed, the RSI is currently at 36, and is heading into oversold territory. This indicates a dominance of selling pressure on buyers. Moreover, the price of Curve (CRV) is well below the Senkou Span A (SSA) and SSB, indicating a very bearish structure.
If this downward trajectory is maintained, the fall could be accentuated. However, if the Curve Finance situation improves today, it is possible to envisage a rebound on the oblique support in blue. Other support levels to watch include the area between the two lows at $0.4011 and $0.3133.
A bullish reaction marked by Curve (CRV) in this zone would represent a buying opportunity. Nevertheless, it is important to note that as long as the trend remains bearish and the situation is not under control, taking a buy position remains risky, while waiting for the next bull-market.
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