Curve DAO Token (CRV) Rebounds From Previous All-Time High Support

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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.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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