While there are some bullish reversal signs, they are not sufficient enough yet to confirm a trend reversal.
CRV All-Time Low
The CRV price has been decreasing since Aug 25, when a high of $23.25 was reached. On Oct 7, the price proceeded to reach an all-time low of $0.045 and created a long lower wick before increasing slightly. The price followed this with another lower wick and a bullish close the next day.
While the RSI is oversold, it has not generated any bullish divergence, which would be a strong sign that the price is moving upwards.
The logarithmic chart is used to better show large price fluctuations.
Cryptocurrency trader @Mesawine1 outlined a CRV chart that shows the price approaching the support line of a descending channel.
A closer look shows that the pattern looks more like a descending wedge than a channel.
Similar to the daily time-frame, the RSI was oversold and has now increased. It has not generated any bullish divergence, however, and the MACD has turned positive.
Nevertheless, the ambiguity in the pattern along with the lack of definitive signs and the fact that the price is trading near an all-time low casts doubt in the possibility of a breakout.
While one could definitely occur, there are no sufficient signs to confirm that a breakout will transpire.
If the price does manage to break out, the closest resistance levels would be found at $2.10 and $2.90, the former coinciding with the top of the wedge.
In the case of a breakout, failure to reach these levels would mean that the breakout was a retracement and CRV will likely continue heading lower to create a new all-time low.
To conclude, while it is possible that the CRV price will break out from its descending wedge, there are no definitive signs that would confirm it will do so.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.