In the world of cryptocurrency, Curve DAO Token (CRV) has captured significant attention due to recent claims of a major liquidation event involving its founder, Michael Egorov. Despite Egorov’s denial of these claims, blockchain data reveals a more intricate story. Amidst this backdrop, CRV experienced a notable 13% price drop, prompting investor concerns about future market trends.
Egorov Dismisses Liquidation Allegations
Blockchain analytics firm PeckShield has reported that Michael Egorov’s account encountered a substantial liquidation on December 19, involving 918,830 CRV tokens, which were valued at approximately $882,660. This event unfolded shortly after Egorov’s recent acquisition of 1.08 million CRV tokens for $1.2 million, purchased at an average price of $1.114 per token.
However, Egorov has refuted these allegations, asserting that the tokens in question are linked to the June 10 “uwu” hack. According to him, these tokens represent “receipts of Sifu’s promise to repay the hacked funds” rather than actual holdings. This explanation has left room for speculation, especially since the timing of the alleged liquidation coincided with a sharp 12% decline in CRV’s market value.
Signs of Optimism Amid Market Volatility
Despite the turbulent times, there are glimmers of hope for Curve DAO. The token has shown signs of recovery, trading above $1 for the first time since April of the previous year. One of the key drivers of this recovery is the launch of Curve Finance’s decentralized stablecoin, Savings-crvUSD (scrvUSD). This stablecoin has significantly bolstered the ecosystem’s scalability and drawn more investors to the platform, leading to a surge in staking volumes, which reached $839.29 million by late November.
Curve Price Update
Following the liquidation reports, CRV’s price plummeted to a low of $0.90 but subsequently rebounded slightly to $0.945, marking an overall 13% decrease. The market’s nervous reaction to the news is evident, even with Egorov’s attempts at clarification. Looking ahead, if CRV’s price fails to maintain its position above $0.90, it may encounter a more substantial decline, possibly descending to the 0.382 Fibonacci retracement level, approximately at $0.83.
Conversely, if the price manages to rebound and surpass the $1 threshold, it could signify a positive shift, with the potential for the token to advance toward the $1.25 resistance level. Such a movement could instill renewed confidence among investors, fostering a more favorable outlook for CRV’s market performance.
