Curve DAO (CRV) has continued to decline recently. Here’s what on-chain data says regarding if a rebound is probable for the coin anytime soon.
What Curve DAO Metrics Hint At Regarding Futures Price Action
In a new insight post, the on-chain analytics firm Santiment has recently discussed how the underlying metrics related to CRV have looked. The first relevant metric here is the “Supply Distribution,” which tells us the percentage of the Curve DAO supply each investor group holds.
In particular, the cohort of interest here holds between 10,000 and 100 million tokens of the asset. This is an extensive range covering the likes of the sharks and whales.
Here is a chart that shows the trend in the holdings of this CRV group over the past year:
Looks like the value of the metric has sharply gone up recently | Source: Santiment
As displayed in the above graph, the indicator’s value has shot up recently, implying that sizeable Curve DAO investors, such as the sharks and whales, have sharply expanded their reserves.
About two weeks back, these holders had been carrying a combined 33% of the circulating supply, but today that value has risen to 41%. “This is a massive ascension and is now the most by far that these sharks and whales have held in well over a year,” notes Santiment.
This accumulation from these key investors has come right after the big plunge that Curve DAO observed, suggesting that they find the current levels a worthy buying opportunity. Naturally, this is a positive sign for the cryptocurrency’s price.
The next indicator of interest here is the “whale transaction count,” which keeps track of the total number of CRV transfers happening on the chain carrying a value of more than $100,000.
The value of this metric seems to have been relatively low recently | Source: Santiment
When Curve Dao had observed its plunge earlier, the value of this indicator had registered a sharp spike. This means that the whales had been actively making moves back then.
Since then, however, the metric’s value has returned to normal, suggesting that these humongous investors aren’t showing any extraordinary activity.
As these investors had made many transfers earlier for selling purposes, the indicator calming down could imply that this cohort has stopped applying selling pressure.
“With prices still significantly lower than two weeks ago, a follow-up whale transaction spike may be a foreshadow to a quick…
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