Curve [CRV] can see deeper losses unless THIS rises dramatically

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.