In this new Wednesday cryptocurrency, we bring you a complete technical analysis of CRV, the native token from Curve, a DeFi platform on Ethereum. The token is used to manage the Curve, for payments made, as well as transaction fees. With the maximum supply of 3.3 billion, only 18% is outstanding at the time of writing this technical analysis. Since the second half of June, CRV has returned to the financial markets. Is this the end of this bullish move in the short term? Let us now move on to our charts to determine the stakes for the coming weeks.
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CRV approaching weekly resistance?
After an all-time high of $ 6.8, which led to one double top (two wicks on the upper red area), the CRV quickly anchored in one downward trend. Incidentally, do not take into account the very first wick that is only due to liquidity problems … In early January 2022, CRV lost the blue zone that served as a hub. Earlier resistance, then supportthis $ 3 / $ 3.4 zone resumed its resistance role, allowing sellers to push the CRV price even lower.
Recently, the token lost its support from the summer of 2021 to $ 1.21, leading to a further bearish acceleration to return to a technical zone by the end of 2020. Heading directly towards the previous support of $ 1.21, this could serve as resistance to reject the price at this level. But given the strength of the downtrend, it is possible to have a top at a lower price level.
For example, we should see the bearish CRV wicks in 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). Sellers could therefore show up at this level to prevent the price from coming in contact with $ 1.21. In this context, as the trend is bearish on a weekly scale, we may consider returning to $ 0.53. At another time it will be necessary to keep an eye onall the time low (historically low), which stands at $ 0.32.
A daily trend that runs out of steam?
On a daily basis, we can see the reaction that took place yesterday at the technical level, which we have just mentioned. After registering a low of $ 0.53, CRV continues to record highs and lows higher than the previous ones. Thus the daily trend is bullish. To maintain this dynamic in the short term, the asset should break out of the $ 1 zone.
But before that, we can consider a correction with a return of the price of demand daily zone. By returning to this zone, the price will allow to close the losing seller orders by registering a low point 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 situation and the macroeconomic situation. The upward trend may come to an end faster than expected. This is without counting on bitcoin, which at any time can decide otherwise the next few days. So in addition to the $ 1.21 target, you should also have smaller, intermediate targets in mind of $ 1.08 and $ 1.14.
It needs to be reasonable on a bearish asset on a weekly basis. Lastly, keep in mind that in the event that you cross completely demand area with a closing below $ 0.63, it will be signs of a trend reversal with a structural rupture current daily bull.
What about CRV’s situation with bitcoin?
After an end-2021 high of 14,700 satoshis, CRV continues to lose strength against the king of cryptocurrencies by registering low and falling highs. Since this is still the case, we should expect one continued underperformance of CRV against BTC over the next few weeks. Currently, we are only seeing a technical recovery from a bearish surplus that pushed CRV all the way up to 2,650 satoshis.
Currently, CRV is back under its former (from March-May 2022). Recently broken, there has never been a return of the price to this level. Is it a reintegration of the price to continue CRV’s performance in the short term? Or would it be the retreat that will mark a new bearish high? As long as CRV will not have taken over the 4,812 satoshis, we will not consider no bullish target against bitcoin. This is therefore in conjunction with the pair against the dollar, which can most likely correct itself over the next few days.
It is already at the end of this analysis of CRV. Whether it is against the dollar or bitcoin, the weekly trend is clearly bearish. Carried by a buying current in recent weeks, the CRV is placed on resistors that it will have to overcome if it wants to maintain the short-term upward trend. Let’s have no illusions, CRV will not be able to grow forever. Thus, it will be necessary to be reactive to the pair against the dollar by monitoring 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, which itself may be in difficulty.
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