In this new crypto nugget on Wednesday, we bring you a full technical analysis of CRV, the native token of Curve, a DeFi platform on Ethereum. The token is used to manage Curve, for both payments and transaction costs. With a max inventory of 3.3 billion, at the time of writing this technical analysis, only 18% is outstanding. Since the second half of June, the CRV has recovered in the financial markets. Is this the end of this short term bullish move? Now let’s move on to our charts to determine the stakes for the coming weeks.
This CRV analysis is presented to you in collaboration with the Coin Trading and Its Algorithmic Trading Solution finally accessible to private persons†
CRV Approaching Weekly Resistance?
After a record high of $6.8, which led to a double top (two fuses on the top red area), CRV quickly anchored in a downward trend† By the way, do not take into account the very first pit that is only the result of liquidity problems… At the beginning of January 2022, CRV lost the blue zone that acted as a pivot. earlier resistance† then supportthis $3 / $3.4 zone resumed its resistance roll, allowing sellers to push CRV price even lower.
Recently, the token lost its support for the summer of 2021 at $1.21, leading to a further bearish acceleration to return to a technical zone from the end of 2020. If we go straight to the former support of $1.21, it could act as a resistance to reject the price at this level. However, given the strength of the downtrend, it is possible to have a top at a lower price level.
For example, we need to keep an eye on the bearish CRV wick for the week of May 16, 2022. In general, this is a level that the market will remember in the event of a technical bounce (the current setup). So the sellers could appear at this level to avoid the price hitting $1.21. In this context, as the trend is bearish on a weekly scale, we may consider a return to USD 0.53. In a second time it will be necessary to put the eyes on theall time low (historic low) which stands at 0.32 dollar.
A daily uptrend running out?
We can see on a daily scale the reaction that happened yesterday at the technical level we just mentioned. After a low of $0.53, CRV continues to record highs and lows that are higher than the previous one. So the daily trend is bullish† To maintain this dynamism in the short term, the asset will have to break out of the 1 dollar zone.
But before that, we can consider a correction with a return of the price on the ask daily zone† By returning to this zone, the price will allow to close the losing seller orders by registering a trough higher than the previous one. Within this framework, still on a daily scale, it seems worth aiming the red zone which was mentioned in the weekly section analysis
However, we must not forget the current market context and the macroeconomic situation. The uptrend may end earlier than expected. This is without taking into account the bitcoin which could decide differently at any time in the coming days. So, in addition to the $1.21 target, you also have smaller, intermediate targets in mind at $1.08 and $1.14.
It is necessary to be reasonable on a bearish asset on a weekly basis. Finally, keep in mind that in the event that you demand area with a lock under $0.63, it will be the sign of a trend reversal immediately structural fracture current daily bull.
What about the situation of CRV with bitcoin?
After peaking at 14,700 satoshis at the end of 2021, CRV continued to lose strength against the king of cryptocurrencies by registering lows and bearish highs. Since this is still the case, we can expect that continued underperformance of CRV against BTC in the coming weeks. Right now we are seeing just a technical rebound from a bearish excess that pushed CRV all the way up to 2,650 satoshis.
Currently, the CRV is back under its old one (from March-May 2022). Recently broken, there has never been a return of the price to this level. Is it a price reintegration to continue CRV’s performance in the near term? Or would it be the pullback that will mark another bearish high? As long as the CRV have not taken over the 4,812 satoshis, we will not consider no bullish targets against bitcoin. So this aligns with the pair against the dollar, which could most likely correct in the coming days.
It is already at the end of this analysis of the CRV. Whether against the dollar or bitcoin, the weekly trend is clearly bearish. Buoyed by a buying flow in recent weeks, the CRV is in resistances it will have to overcome if it is to sustain the uptrend in the near term. Let’s not be under any illusions, the CRV will not be able to grow forever. So it will be necessary to be responsive to the pair versus the dollar by keeping an eye on the potential correction. Finally, always keep an eye on the pair against bitcoin. It helps to understand the health of the altcoin against the king of cryptocurrencies who may be in trouble himself.
Is it possible to be a winner every time? Whether the bitcoin price is in great shape or going through turbulence, Coin Trading offers you to increase your chances of success. Indeed, Coin Trading gives individuals access to a trading instrument algorithmic and 100% automated. True trend mechanism, follow our affiliate link to test this tool designed to adapt to market reversals and position yourself on the most dynamic crypto assets of the moment.