Curve DAO Surges 15.5% to Two-Month High on Buyer Momentum

Curve DAO, a decentralized exchange liquidity protocol, experienced a significant surge of 15.5% in its value, reaching a two-month high of $0.80 before slightly retracing to $0.79. This rally was driven by a shift in momentum on the daily charts, where the altcoin had been coiling within a long-term compression wedge. The market capitalization of Curve DAO spiked by 14% to $1.08 billion, reflecting growing on-chain activity and massive capital flow.

The price upswing was primarily driven by a strong comeback of buyers, who returned to the market with significant strength. This led to two consecutive days of negative netflow, indicating aggressive accumulation. According to CoinGlass, Curve DAO’s Exchange Netflow dropped significantly, hitting a three-week low of -$2.67 million. A similar pattern was observed on the 15th of July, with Netflow dropping to -$2.29 million, further confirming the aggressive buying behavior.

As a result of this aggressive buying, CRV’s scarcity soared to an all-time high of 71.68 according to Santiment data. This high scarcity suggests that there are fewer tokens available for immediate selling, which historically has preceded higher prices as upward pressure on prices mounted amid low selling activity.

Amidst the strong price upswing, buyers rushed into the market to strategically position themselves, awaiting the next move. According to Coinalyze, Curve DAO’s Funding Rate turned positive again on the 16th of July. As of this writing, the Funding Rate was 0.0077 while the Predicted Funding Rate was 0.017, reflecting strong demand for long positions. Consequently, the Long Short Ratio surged to 1.56 with Longs accounting for 60%, while shorts made up 39.37%. A high demand for long positions often implies that investors are aggressively betting on rising prices.

According to AMBCrypto’s analysis, Curve DAO surged as buyers flowed into the market to chase the rally. As a result, the altcoin’s Relative Strength Index (RSI) soared to 76, touching overbought territory. Likewise, the +DI of DMI hiked to 40.5, reflecting strong upward momentum and its continuation potential. When these momentum indicators are set, they suggest that markets are bullish and the trend is likely to continue.

That said, if buyers continue at the current speed, Curve DAO could make more gains. The final supply level remains $0.86 as it aligns with multi-month resistance. However, CRV must record a daily close above $0.77 after the flip; anything below would invalidate this uptrend and retrace to $0.70.