Curve DAO Token Technical Analysis: CRV bulls fight to regain control


  • CRV makes a compelling move upwards following a buy signal on the daily chart.
  • The upper boundary of the descending channel must be broken for CRV to embark on recovery fully.

Curve DAO Token has sustained a bearish narrative since the spike that immediately followed its launch in August. The flash rally to 24 was unsustainable, but the correction that followed has been unstoppable.

Support seems to have been established at $0.34 in aided by a descending parallel channel. CRV/USD's bounce off support has slowed down on reaching the upper boundary of the channel. The token is exchanging hands at $0.37 amid a growing push to place the cryptoasset in an upward trajectory.

Curve Finance is the issuing company behind CRV and a decentralized exchange liquidity pool executing on Ethereum. The platform has been tailor-made for "extremely efficient stablecoin trading."

On the other hand, Curve DAO Token was launched on August 14, 2020. According to Curve Finance, CRV is a governance token that employs time-weighted voting as well as value accrual mechanisms. The token allows users to lock their funds to ensure long-term liquidity and earn rewards for the same.

Curve DAO Token nurturing an uptrend

After clearing the resistance at the channel's middle boundary, CRV is fighting for a breakout above the upper trendline. The Relative Strength Index (RSI) highlights the bullish case with the upward action from the overbought area. Further movement above the midline will call for more buy orders, creating the volume to sustain the uptrend.

CRV/USD 1-hour chart

CRV/USD price chart

Several hurdles ahead of CRV are likely to delay the uptrend, starting with the 50 Simple Moving Average (SMA), 100 SMA and the 200 SMA in the 1-hour timeframe. However, the TD Sequential indicator presents a buy signal in the form of a red nine candlestick on the daily chart. This adds weight to the bullish scenario, which, if sustained, may push CRV above $0.1.

CRV/USD daily chart

CRV/USD price chart

Looking at the other side of the picture

According to IntoTheBlock's IOMAP, the road ahead of Curve DAO Token might only allow the uptrend a smooth sailing above $0.4. The robust resistance running from $0.42 to $0.4 is likely to invalidate the bullish outlook to $0.1. Here, 236 addresses previously bought 2.7 million CRV.

CRV IOMAP chart

CRV IOMAP chart

On the downside, the lack of a formidable support area means that CRV could still plunge further, mostly if the upper boundary of the descending parallel channel remains intact. However, the model presents weak support between $3.6 and $3.8. Here, 11 addresses brought roughly 95,200 CRV.


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


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP