After shedding more than 40% loss in almost two months, Curve DAO fell back near its bottom and temporarily halted bearish. It has bounced slightly and now forms a bullish pattern on the lower timeframe.
CRV entered this year so weak after ending a two-month rally at $0.73. It lost grip and started to decline weekly. After four weeks of steady drops, it reached a crucial support area and halted selling during last week’s bounce.
It held the $0.43 level as support and showed signs of recovery with a double-bottom formation on the 4-hour chart. Although the buy signal is not clear at the moment. It must climb above the $0.5 level to confirm a buy.
Should that scenario come into play, we can start to consider an upward price movement, which might later turn into a shift in trend in the long run. As of now, the market looks indecisive.
Towards the downsides, there’s still room for drops. Losing the mentioned holding support could lead to more slides into the bottom level, where it is likely to find a solid rebound.
Failure to bounce off the bottom may result in a catastrophic loss. Currently, the buyers are showing commitment but is not strong enough to bring them back into the market. The bears still have the upper hand.
Curve’s Key Levels To Watch
A crack below the holding support level could slip the price lower to $0.41 before bouncing back. The $0.387 support level is the last defence line for the bulls.
If the price bounces above the $0.49 level, the next resistance level to keep in mind is $0.54. The higher level to watch above this level lies at $0.60.
Key Resistance Levels: $0.49, $0.54, $0.60
Key Support Levels: $0.437, $0.41, $0.387
- Spot Price: $0.46
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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