Protocol Curve Finance has been a target of a vulnerability exploit in its code, leaving the hackers with a $70 million bag in various tokens. Some of these funds have been white-hacked – meaning that maybe not all of these funds are lost. On the other hand, the hacking continued after the statement of hack contamination.
Curve Finance is the second-largest DEX with $3 billion in liquidity, and it’s highly significant in the stablecoin market swaps. The CRV governance token price decreased by 33% from July 31 open of $0.74 to its lowest point today of $0.48, August 1. It is being traded at $0.59 at the time of writing, but things are not looking good.
Meanwhile, investors have been allocating their capital and attention to its largest competitor, Uniswap, and buying up the exchange token UNI, resulting in a price increase of 4.5% at its highest rise today, August 1.
The futures market premium especially indicates interest as Funding Rate and Open Interest continue to rise for the UNI token. With its uptrend from July 25, which resulted in a 16% increase, will this token advance even further?
The price of the UNI token has been on the rise since June 10, when it fell to $3.60. It recovered by 84% since, reaching its highest point of $6.60 today. We have seen a parallel channel forming with frequent retests of the support/resistance levels that were highly respected.
On August 1, a minor pullback has started, but the overall structure still indicates bullish price action. We haven’t seen another interaction with the channels resistance level today but the price revisited the highs for mid-April and late March, which proved to serve as strong resistance.
This channel has lasted 53 days straight and has significantly recovered without a major pullback. On the increase alone and the longevity of the move, we could assume that a correction is long-due, but the bullish structure, as already mentioned, has been intact.
Fundamentals are definitely looking strong for the UNI token at the momentum as they were in the previous period.
Transaction data on Messari shows both an increase in activity and the increase in transacted value. We saw large spikes on July 13, but the values fell to their media levels after. From July 21, further increases were seen, out of which the momentum really took off from July 28 and resulted in spikes on August 1, doubling and even tripling in value in the last 24 hours.
Transaction volume was sitting at $12.3 million on July 27, increasing to $102 million on the 31st. The Average Transfer Value rose from $15,110 on the 27th to $52,000 on the 31st.
Open Interest on Coinglass has also been on a steep rise, from $46.6 million on July 27 to $81.21 million at its highest point so far. These levels were last seen in November of 2022 when the price of UNI was trading at $7.60.
The funding rate has also increased, with OI-weighted coming to a higher high. This indicates that there are more long traders at the moment who are willing to pay short traders, thus showing a bullish sentiment.
As stated at the beginning of the article, the price of UNI was in an uptrend from June 10, when an interaction with its lowest support point at $3.60 was made. This uptrend led the price to a breakout above the descending triangle which formed from February 2022.
The breakout from this structure, supported by the technical indicators MACD and RSI, could have indicated the start of a bullish cycle for UNI. A parallel channel formed since June 10, which is, in that case, the first sub-wave of the bullish cycle, but without any major signs of struggle, it could continue moving to the upside.
The price today, August 1, reached the first significant horizontal zone, around $6.6,0, but that zone isn’t as significant as the next one, around $7.60. This is why, in the near-term, further uptrend continuation for interaction with the zone above is more likely.
RSI is still below the 70% mark, and it consolidated below it from July 27, moving sideways to 57% and back up. Now it is on the rise again, so if a quick price spike occurs, it would lead it into the oversold and indicate a potential ending uptrend.
MACD has yet again signaled the starting uptrend from July 29, and even with a minor price pullback we have seen today, the histogram is in the green, meaning the upward momentum isn’t diminishing.
Zooming into the hourly chart, we can see that the wave structure supports the assumption of another higher high. According to our Elliott Wave count, the last increase from July 25 is the ending wave of the five-wave impulse.
Examining its sub-waves, we are now most likely seeing the start of wave 4 from the Minuette degree, which correlates with the horizontal resistance interaction. If we now see sideways movement or a consolidative range of some sort developing a higher high to the next resistance zone of $7.6 would be highly likely.
The price of Uniswap has continued its uptrend and with a minor pullback seen today, the overall structure still remains bullish. Network fundamentals have been showing higher activity and the derivatives market indicated a bullish sentiment.
Curve Finance hack, although not the cause of the price increase in UNI, definitely has contributed to the appreciation and is likely to lead forward. In the coming days, if we see consolidation around $6.50, another higher high of $7.60 would be a likely outcome.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.