Curve DAO Token (CRV) Fails to Maintain Rally Above $3.50

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In Brief
  • Curve DAO Token is following a long-term ascending support line.

  • CRV is facing strong resistance at $3.50.

  • Technical indicators are bearish.

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Curve DAO Token (CRV) has fallen below a crucial horizontal area at $3.50. Until this area is reclaimed, the trend cannot be considered bullish.

Curve DAO Token has been falling since reaching an all-time high price of $6.80 on Jan 4. So far, it has fallen by 59.35%, leading to a local low of $2.36 on Jan 24. 

CRV bounced back after hitting this low and validated an ascending support line that has been in place since January 2021. This is the fifth time it has validated this line, increasing its significance as a support level. 

On the other hand, CRV has also fallen below the $3.50 zone, which previously acted as the former all-time high resistance, and is now expected to act as support. Until it reclaims this level, the trend cannot be considered bullish.

Future CRV movement

Technical indicators in the daily time frame provide a generally bearish reading. 

The MACD, which is created by short and long-term moving averages (MA) is moving downward and is negative. This is a sign associated with bearish trends and means that the short-term MA is slower than the long-term average. 

The RSI, which is a momentum indicator, is decreasing and has fallen below 30. This is also a sign associated with bearish trends. 

Therefore, while CRV is trading above horizontal and Fib support at $2.70, there are no bullish indicators in place to suggest a reversal.

Wave count analysis

Cryptocurrency trader @TheTradingHubb tweeted some observations, stating that CRV could potentially fall all the way back to $1.50.

Besides technical indicators being bearish, the wave count also suggests that the downward movement for CRV is not yet complete.

It seems that CRV is currently completing wave four of a five-wave downward movement. 

Therefore, after the current bounce, another downward move would be expected. If this occurs, the $1.50 area is likely to provide support and complete the corrective pattern.

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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