- The whales on Curve Finance have asked for more gauges to be added to Ethereum.
- CRV is significantly overbought at press time and may be due for a price correction.
Following a request from whale addresses on its platform, Ethereum-based decentralized finance platform Curve Finance (DeFi) a Suggestion to add more gauges to its liquidity pools on Ethereum.
After seeing how well v2 pools with different tokens work with sufficient liquidity, there was a request from whales for more gauges for Ethereum. We’re adding one every few weeks and starting this stack with MATIC/ETH – now for voting! https://t.co/LAnrvFSNJh
— Curve Finance (@CurveFinance) January 22, 2023
the measuring system on Curve Finance measures the liquidity of a specific pool or set of pools on the platform. The meters are used to determine the stability fee (or interest rate) of a particular pool, with pools with lower meters having a higher stability fee. With gauges on Curve Finance, liquidity is evenly distributed across the pools.
Read those from Curve Finance [CRV] Price prediction 2023-24
According to Curve Finance, the request to add more gauges to the Ethereum network was due to the success of its V2 pools, which consist of various tokens with sufficient liquidity. These gauges will be added by adding a gauge every few weeks, starting with MATIC/ETH, Curve Finance said.
Adding more gauges to the Ethereum network on the Curve Finance platform will expand the number of pools available to users and provide more options for exchanging different assets.
As of this writing, all 22 votes cast were in favor of adding more gauges.
Source: Curve Finance
CRV among top winners
After CoinMarketCapthe Curve DAO token [CRV] saw a 20.89% gain in value over the past week, making it one of the top 5 cryptocurrencies with the highest gains over the period. As of this writing, the altcoin is trading at $1.08 after seeing a 7% jump in price over the past 24 hours.
With the overall cryptocurrency market showing positive sentiment since the beginning of the year, the number of unique addresses trading CRV tokens has increased since January 1st.
Additionally, demand for the token has increased significantly as the daily number of newly created CRV addresses increased by 103%.
Source: Santiment
With year-to-date CRV accumulation increasing, the alt was overbought at press time. Its Relative Strength Index (RSI) was 84.60. Its Money Flow Index (MFI) was spotted at an all-time high of 100.
A price correction is common at these clearly overbought highs. Buyers typically find it difficult to support another price rally from these highs, and bears often return to the market to initiate a price decline.
A look at the alto’s Chaikin Money Flow (CMF) confirmed this. At press time, CRV’s CMF has been spotted in a downtrend, although it is still above the midline.
Is your portfolio green? Check out the CRV Profit Calculator
When an asset’s CMF is trending down while the asset’s price is rising, it may indicate that the asset’s price is rising due to weak buying pressure. This means that the asset is being bought by a smaller number of investors or that buying pressure needs to be stronger to support the price rise.
This usually indicates that the asset is overbought and that a price correction is more than likely.
Source: CRV/USD trade view
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