DWF Labs bought 2.5M $CRV.https://t.co/MQg382LigF bought 2.5M $CRV.
…Michael Egorov has sold a total of 39.25M $CRV via OTC and received 15.8M $USDT.https://t.co/hQBlW5WG6J pic.twitter.com/NMIQ2p05ZL— Lookonchain (@lookonchain) August 1, 2023
The buyers purchased CRV at $0.40 per token, a 25% discount to the market price at the time.Egorov also partially paid his Tether (USDT) loans on Aave, reducing the principal from $63.20 million to $54.1 million, per DeBank data. The partial repayment of the loan comes as a positive step in reducing the liquidation risk.Currently, Egorov’s loans on Aave will be liquidated if the CRV price falls to $0.36 or lower, per DefiLlama.Related: Vyper vulnerability exposes DeFi ecosystem to stress testsCRV price analysis The derivatives position of CRV traders suggests that the token may rally in the short term as a contrarian bet.The funding rate for CRV perpetual swaps, which represents the relative demand for long or short positions, shows traders are actively shorting CRV, as its funding rate fell to -0.1% for eight-hour intervals, per CoinGlass data. It raises the possibility of a short squeeze in the market, where short holders are forced to buy CRV as its price rallies.The CRV/USD pair is trending near multiyear lows at around $0.50. If buyers are able to build support at this level, the price can rally in the short to medium term toward the horizontal resistance levels of $0.78 and $1.23.CRV/USD price analysis. Source: TradingViewA long trade definitely comes with risks, as the hackers are still sitting on 7.1 million CRV tokens worth $4.5 million. If the attackers convert their holdings into stablecoins or more liquid tokens such as Bitcoin (BTC) or Ether (ETH), the price may revisit this week’s low, around $0.48.Moreover, while Egorov has lowered the liquidation risk slightly, the risk is still not eliminated completely. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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