On Tuesday, the price of Curve DAO Token (CRV) fell by 24%, from $0.537 to $0.407. However, the CRV price has recovered from this significant drop and is currently trading in the green. Whales may have planned a CRV short squeeze here, according to experts.
Whales Preparing for CRV Short Squeeze
Crypto whales, according to reports, have gone massively short on CRV on exchanges. Whales borrowed Curve DAO Tokens through AAVE, the Open Source Liquidity Protocol, and then sold them on exchanges.
The whales borrowed more Curve DAO Token to sell on AAVE as the CRV price fell. This procedure was repeated several times. Those whales flipped long on CEX when the CRV price reached its lowest possible limit. This price level is estimated to be around $0.40.
However, whales are now buying CRV on exchanges in order to drive up its price. Crypto whales will liquidate their AAVE positions. Due to limited on-chain liquidity, the planned AAVE liquidation process will cause the CRV price to moon.
CRV Soars Dramatically
The expert suggested that the CRV short squeeze has started here. When the AAVE liquidation will hit a pump can be seen in the price level.
Curve DAO Token prices have skyrocketed by 22% in the last 24 hours. CRV is trading at an average price of $0.602, at the press time. Its 24 hour trading volume is up by a whopping 733% to stand at $425 million.