Curve DAO Token (CRV) has broken out from a short-term descending resistance line and created its first higher low since June 18.
CRV has been falling since reaching a high of $6.40 in Jan. The downward movement has so far led to a low of $0.535 on June 18. The price bounced afterwards and has been increasing since.
The June 18 low served to validate the support line of a descending parallel channel, which has been in place since the beginning of Feb.
If the upward movement continues, the closest resistance area would be at $1.32. This is a previous support area that coincides with the resistance line of the channel.
Will CRV break out?
A closer look at the daily chart shows that the RSI has bounced outside its oversold territory and broken out from a descending resistance line. These are both considered bullish readings, indicating that the increase is expected to continue.
An RSI movement above 50 would be the final sign that the trend is bullish, at least until $1.32.
The six-hour chart shows that CRV has already broken out from a descending resistance line. If it manages to move above the $0.89 minor resistance area, it could increase towards the aforementioned $1.32 resistance area.
Wave count analysis
Cryptocurrency trader @Thetradinghubb tweeted a chart of CRV, stating that the price could increase all the way to $1.
Since the tweet, the price has broken out from its short-term channel, creating a higher low in the process.
There are two main possibilities for the main count. If the increase is part of an A-B-C corrective structure (black), giving waves A:C a 1:1 ratio would lead to a high of $0.975.
Conversely, if the increase is a new bullish trend reversal (red), the price could increase all the way to $1.32.
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