- Curve DAO price breaks out of the descending wedge pattern, signaling a bullish move.
- On-chain data shows that CRV Daily Active addresses are rising, suggesting greater blockchain usage.
- A daily candlestick close below $0.225 would invalidate the bullish thesis.
Curve DAO (CRV) price broke out of the falling wedge pattern on Monday and trades up by 0.26% to $0.303 on Tuesday. On-chain data shows rising daily active addresses, indicating increased blockchain usage, which could signal a potential rally in the coming days.
Curve DAO price shows potential for a rally
Curve DAO price broke above the falling wedge pattern on Monday. This pattern is formed by connecting swing highs and lows with trendlines from mid-June to August. A breakout of this pattern signals a potential bullish trend. As of Tuesday, CRV is trading slightly higher by 0.26%, at $0.303.
If the upper trendline of the falling wedge pattern holds as throwback support at around $0.275, CRV could rally 40% from that level, targeting $0.387, its 61.8% Fibonacci retracement level drawn from a swing high of $0.515 from May 25 to a swing low of $0.180 from August 5.
On the daily chart, the Relative Strength Index (RSI) is currently above the neutral level of 50, and the Awesome Oscillator (AO) is also approaching its threshold. Both indicators must maintain their positions above average for the bullish momentum to be sustained. This scenario would contribute additional momentum to the ongoing recovery rally.
CRV/USDT daily chart
Santiment's Daily Active Addresses index, which helps track network activity over time, aligns with the bullish outlook noted from a technical perspective. A rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.
In CRV's case, Daily Active Addresses have risen by 73% in one day. This rise is the highest since mid-June and indicates that demand for CRV's blockchain usage is increasing, which could propel a rally in Curve DAO's price.
%20[08.15.13,%2013%20Aug,%202024]-638591173985019545.png)
CRV Daily Active Addresses chart
Meanwhile, Artemis Terminal data shows that Curve DAO's decentralized exchange (DEX) saw a record trading volume of $1.7 billion on August 5, the highest this year, signaling a surge in trader interest and liquidity that bolsters the platform's bullish outlook.
-638591174240963416.jpg)
CRV DEX trading volume chart
Despite the bullish thesis signaled by both on-chain data and technical analysis, if Curve DAO's daily candlestick closes below the $0.225 daily low of August 8, the outlook will shift to bearish. This scenario could lead to a 20% crash to retest its low of $0.180 on August 5.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polymarket secures partnership with Perplexity amid open interest decline
Polymarket partnered with the AI search engine Perplexity on Monday to enable news summaries on events for users, enhancing the overall experience on the prediction market. The announcement follows a drop in Polymarket's open interest.
Ethereum poised for 20% rally following buying pressure from ETF investors but faces key trendline hurdle
Ethereum (ETH) is up 1% on Monday and is looking set for a 20% rally following buying momentum from traditional investors across ETH ETFs. However, it faces potential bearish pressure from a likely dump by an old whale and resistance around a key trendline.
Crypto market could be set for rebound following net inflows, Marathon's heavy Bitcoin buyback plan
Crypto investment products turned green last week after seeing net inflows of $176 million. Meanwhile, Marathon Digital (MARA) plans to add to its Bitcoin holdings with convertible note offerings worth $250 million as the crypto market recovery looks imminent.
Dogecoin faces key hurdles as it attempts to stage a recovery
Dogecoin (DOGE) is up 0.5% on Monday as it attempts to stage a comeback from last week's market decline. In the past week, DOGE rallied 25% amid signs of recovery visible across its on-chain metrics. However, the technical side shows that key indicators could hamper DOGE's road to recovery.
Bitcoin: Can BTC bounce back from recent market crash?
Bitcoin (BTC) trades above $60,000 on Friday after a 7.2% decline and a dip below the $50,000 level earlier in the week, following a test of its daily support level at around $49,900 on Monday.