Curve DAO token [CRV] experienced a 13% decline as of early September 16, with bearish sentiment dominating the market. The sell-off occurred alongside a significant surge in on-chain activity, with active addresses reaching approximately 5,868 and transaction volume climbing to 45,536.
On-chain volume spiked to $167.9 million, marking the second-highest level since September 3. This volume increase during a price decline typically indicates aggressive selling rather than sustained buying interest.
Liquidations Show Imbalance Favoring Bears
CoinGlass data revealed a stark disparity in liquidations over the past 24 hours. Long liquidations—positions betting on price increases—reached $885,550, while short liquidations stood at approximately $71,550. This ten-fold difference indicates that traders betting long faced significantly greater losses than those betting short.
Funding Rate data corroborated the bearish positioning, declining from 0.0097% on September 15 to -0.0046%, reflecting a heavy skew toward short positions in the perpetual market.
Liquidation Clusters Suggest Limited Downside
However, liquidation heatmap analysis identified a potential constraint on further declines. CoinGlass data showed limited clusters of unfilled buy and sell orders positioned below the current price level, compared to clusters above price. This distribution suggests limited downside support pulling the asset lower.
Historically, this pattern has preceded price rebounds once broader market conditions shift more favorable.
