Prepare for a Potential Upcoming Price Rally for CRV Token
In the recent period, the value of Curve’s CRV token has been consistently on the rise. After an impressive 123.49% surge in the prior week, the token has seen a further 44.13% increase in the last 24 hours, placing it among the top-performing assets in the market.
Examining the reasons behind the recent price hike of CRV, and assessing the likelihood of this upward trend continuing, reveals interesting insights.
Growing Investor Interest in CRV
Investor confidence in CRV has experienced a notable boost as indicated by increased developer activity and total value locked (TVL).
The total value locked (TVL) serves as an important metric reflecting the level of investor involvement in a blockchain ecosystem, showcasing the assets deposited and staked to support operations and growth.
Following a prolonged decline since September, CRV’s TVL has now rebounded significantly to reach $2.03 billion. This recovery mirrors the pre-decline levels and signifies a growing positivity among investors.
The upsurge in TVL matches a surge in developer engagement, showcasing ongoing enhancements and innovations within the CRV ecosystem, potentially fueling the positive price momentum.
This surge in buying momentum extends beyond ecosystem investors to the derivatives market, where traders are increasingly optimistic about CRV’s future.
Derivative Traders Boosting CRV’s Momentum
Derivative traders are echoing the sentiments of investors by initiating long positions on CRV, displaying strong positivity towards the token.
Within the last 24 hours, the Funding Rate has notably increased to 0.0820%, highlighting a predominantly bullish stance among long traders actively participating in the market.
The Funding Rate plays a vital role in balancing the difference between an asset’s spot price and Futures price. A rising Funding Rate, as seen in this scenario, suggests a dominance of buyers (long traders) in market activities.
Open Interest has witnessed a substantial surge, with a 30.42% increase to $270.33 million.
This growth signifies a higher number of active buyers, with open contracts and sustainable positions further reinforcing the positive outlook for CRV.
Rising Long Positions on CRV
Data from Coinglass reveals a rise in long positions initiated, indicating a growing optimism among traders.
Currently, the Long/Short Ratio has climbed to 0.9739, indicating increased interest in CRV. Should this ratio exceed 1, it could provide additional support for the ongoing surge in CRV’s value, particularly if investor and derivative trader activities continue to strengthen.