Curve DAO Token (CRV) is showing bullish price action despite the ambiguity in technical indicator readings.
CRV has been falling since Nov 25 after reaching an all-time high price of $6.40. The decrease was sharp and led to a low of $2.77 on Dec 4.
Despite the drop, CRV bounced considerably the same day and created a long lower wick in the process (green icon). This is considered a sign of buying pressure.
The bounce validated the previous descending resistance line and the upward movement allowed CRV to reclaim the $3.75 horizontal area, which is expected to act as support once again.
Due to the lack of a daily close below this area, the wick breakdown can be discounted.
Despite the bullish price action, technical indicators are relatively neutral.
The MACD, which is created by short and long-term moving averages (MA), is decreasing, even though it’s still positive.
The RSI, which is a momentum indicator, is right at the 50-line. This is considered a sign of a neutral trend since movements above/below this line are indicative of a bullish/bearish signal.
Cryptocurrency trader @Crediblecrypto outlined a CRV chart, stating that the price action is bullish as long as it’s trading above the $3.75 horizontal area. This aligns with the outlook from the daily time frame.
Short-term CRV bounce
The two-hour chart shows that CRV has been decreasing underneath a descending resistance line since the aforementioned Nov 25 all-time high price.
The line also coincides with the $4.18 resistance, which is both a horizontal resistance area and the 0.382 Fib retracement resistance level.
Therefore, until CRV breaks out above this line, the short-term bullish trend reversal cannot be confirmed.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Trusted
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
