Centrifuge's CFG token has declined more than 14% in the past 24 hours, extending a double-digit decline in market cap over the past week. The sharper decline in CFG points to a coin-specific weakness with its real-world asset (RWA) niche. According to data from Token Terminal, Centrifuge's RWA activity declined on multiple fronts, including a 10% fall in Monthly Asset Transfer Volume and a 58% loss in Monthly Asset Transfer Count.
Market Performance
The Centrifuge ecosystem saw net USD outflows of more than $2.25 million, and the Total Value Locked (TVL) was flat at around $1.709 billion after a sharp drop from its highs. The TVL of CFG in April was above the $2 billion mark. The activity on the chain was low, evident from the fees generated, with the ecosystem generating about $200.9K in the past 24 hours.
Technical Analysis
The market structure of CFG was bearish since mid-July, with the altcoin falling inside a wedge pattern and breaking below the lower trendline support. Momentum indicators reinforced the bearish control, with the reading of Bull Bear Power (BBP) bars at -0.0243 and Chaikin Money Flow (CMF) crashing to -0.22, indicating capital flight. However, the altcoin is closer to $0.1257, which is the demand zone that pushed it to a peak value of $0.3497, and could be the start of a recovery if bulls return.
