A well-known and respected crypto strategist has provided insights regarding a potential short squeeze for Curve (CRV), an altcoin project that recently fell victim to a costly $41 million hack. Credible Crypto, a pseudonymous analyst with a substantial Twitter following of 343,200, has highlighted the significant amount of short interest surrounding CRV.
According to Credible Crypto, if CRV fails to further decline from its current value, it may trigger a short squeeze. A short squeeze occurs when traders who borrow an asset at a certain price in hopes of selling it lower are forced to buy back the assets they borrowed as the market moves against them. This sudden surge in buying pressure can generate further price rallies.
The analyst predicts that CRV could decline to $0.49 from its current value of $0.59, translating to a 17% decrease. Credible Crypto employs the Elliott Wave theory, which follows a five-wave pattern to determine the primary trend of an asset’s price action. This theory leads him to his bottom price target.
However, Credible Crypto acknowledges that there are essential factors that need to be addressed before focusing solely on CRV’s charts. These issues should be resolved within the next 48 to 72 hours. From a technical standpoint, the analyst believes that the drop in price is not yet complete. He suggests the possibility of CRV falling into the green zone, as highlighted in his previous chart nearly a month ago. Credible Crypto’s sentiments reflect the anticipation surrounding CRV’s future movements.
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The recent vulnerability in the programming language Vyper 0.2.15 has adversely impacted Curve. The platform experienced the exploitation of multiple liquidity pools, prompting Curve to request users from the affected pools to withdraw their funds. Blockchain security infrastructure firm, BlockSec, estimates that the hack resulted in a theft exceeding $41 million.
While CRV faces challenges due to the hack, the crypto community remains attentive to potential market dynamics. Traders are closely monitoring the potential short squeeze and the subsequent impact on CRV’s price. The outcome of the next few days will determine the direction in which CRV moves and whether short sellers face a squeeze.
As always, it’s important to exercise caution and conduct thorough research before making investment decisions, especially when it comes to high-risk investments like cryptocurrencies. The Daily Hodl does not offer investment advice and encourages investors to do their due diligence. It’s advisable to stay updated with the latest news and price actions in the crypto market.
In conclusion, Credible Crypto’s analysis indicates a potential short squeeze for CRV, an altcoin project affected by a significant hack. The outcome of the next few days will determine whether short sellers face a squeeze and how CRV’s price will be affected. Traders and investors are urged to stay informed, exercise caution, and conduct in-depth research before making any investment decisions in the cryptocurrency market.
