A bearish revival from the resistance by the 100-day Exponential Moving Average and descending trend-line catalyzes the upcoming bear cycle inside a descending triangle setup.
The declining prices had Curve Dao devaluing by 12.8%, plummeting beneath the 20- and 50-day Exponential Moving Average. Therefore, the alt might extend its drops to retest the lower support at $2 – $1.9.
Vital Points
- The on-balance volume chart depicts visible bullish divergence.
- The token would retest $2 – $1.9 foothold.
- CRV’s intraday trading volume stood at $291.2 million, reflecting a 46% uptick.
The sudden decline during late January sessions saw Curve Dao printing new lower peaks in response to a plunging trend line. Nevertheless, massive support near $1.9 limited any further losses, catalyzing the descending triangle setup formation.
The alternative token has narrowed inside this pattern within the previous three months while gradually nearing its breakout. The latest revival frim the falling trend-line had the alt dropping 15%. However, CRV reverted quickly from $2.17, forming a morning star candlestick.
For now, CRV trades near $2.23, following a 3.16% 24-hour loss. Nevertheless, the token has its price stuck inside a no-trading territory, and thus traders should wait for a decisive breakout before joining the market.
If Curve Dao breached the lower support floor at $1.9, bears would drag the token beneath the $1.5 value area. Meanwhile, an optimist breakout from the immediate resistance might trigger a 20% increase for the asset, propelling CRV to $3.2 before hitting $3.7.
Technical Analysis
Sideways action by the Bollinger band reflects the CRV’s range rally. A downside retest of the indicator’s mid-line foothold indicates the token would plummet towards the support at $1.9. Though the price action formed a lower low, the higher trend by OBV shows increased chances of resistance breakout amid the up-and-coming trading sessions.
Nevertheless, the broad market sentiment remains crucial for Curve Dao. For now, the marketplace shows bears dominating. That can mean weakness in the coming days, halting recovery thesis in most alts, including CRV.
Resistance zones – $2.7, then $3.2
Support zones – $2 – $1.92, then $1.24
Editorial credit: FellowNeko shutterstock.com
