In an unfortunate string of events, CurveDAO (CRV) hit rock-bound prices following a harsh exploit on July 30, resulting in a shocking $61m theft from Curve Finance pools. This unsettling incident undoubtedly induced volatility in the DeFi markets, sending CRV into a 20% nosedive. Spiral in market faith is observable in this scenario, stirring questions on whether the maltreated project can bounce back.
Despite this debacle, green shoots of recovery are visible. The CurveDAO proposal #394, aimed at whitelisting DeFi protocol PrismaFi, ostebsibly indicated enhanced DAO engagement and vibrancy in the ecosystem. Though, uncertainty looms with CRV prices continuing to showcase sinking trends.
On the charted territory, the CRV token is currently traded at a rock-bottom price of $0.47. August turned out to be a rollercoaster for the coin with a -19.5% dip since the outset of the month. A crucial support level of $0.45 is on the radar as CRV teeters on the brink of a possible breakdown.
While restrictions from the 20DMA cap the upside trend in the short term, the 200DMA stands firm at $0.84. CRV’s indicators provide optimistic signals, with the RSI showcasing a considerable oversold signal at 23, suggestive of a possible price hike.
Historical data throws light on similar scenes post the FTX crash in late 2022. CRV bounced from the very $0.45 to mount a 160% recovery rally later. However, this optimism is balanced by current market trends, limiting a bounce by the resistance from the 20DMA.
A potential upside target lies at $0.60 amidst this volatility, indicating a possible +27.4% move, balanced by risk reduction to a -4.4% move relative to the support at $0.45. This results in an attractive risk-reward ratio of 6.25. While risk is imminent, it often makes for an exciting long position entry, luring the bold.
In a contrasting scene, let’s shift our attention to the up-and-coming Sonik Coin project, marvellously raising over $350,000 ahead of its presale in merely a week, aimed at the ambitious endeavour of hitting the $100 million market cap at the earliest.
Sonik Coin, in contrast to the run-of-the-mill meme coins, boasts of an impressive APY of 209%, underlying potential returns. The staking model adds an avenue for passive income, thus propelling token holders for longer holding periods. This aids in dampening the price volatility usually associated with meme coins and bolsters steady growth opportunities.
Analogy with PepeCoin provides a testament of the stature Sonik Coin wishes to establish. Pepecoin delivered returns over 10,000% to its initial investors, setting an enticing precedent. Considering Sonik Coin’s staking model, and the substantial hype around it owing to the Sonic the Hedgehog nod, a similar upwards trajectory is forecasted.
While high risk is universal in crypto assets, Sonik seems to shine in an otherwise crowded meme coin market. But, it is a game of the early birds. As always, go in informed and ready. Well, that seems to be the trick in this rollercoaster world of cryptocurrencies.
Source: Cryptonews
