Curve DAO Token (CRV) has regained its long-term support area and is showing bullish signs in the lower time frames.
During the week of November 15-22 CRV has created a long wick at the bottom. This is seen as a sign of pressure to buy. More importantly, it occurred just above the $ 3.60 zone. This zone acted as a resistance between September 2020 and October 2021. Hence, a break above it and subsequent confirmation is an extremely bullish sign as the zone is currently expected to be support.
If the CRV continues to rise, the next resistance will be at $ 6.
Weekly CRV / USDT Chart | Source: TradingView
The daily chart supports the continuation of the uptrend. It shows that CRV broke the descending resistance line and subsequently confirmed it as support (green symbol). This is another bullish sign that confirms the correction is over.
If the uptrend resumes, the next resistance will be at $ 6.87. This is the Fibonacci retracement resistance level outside of 1.61.
Technical indicators support the continuation of the upward trend.
The MACD, formed by the short and long term moving averages (MA), is in positive territory and has created a higher momentum bar. This means that the short-term MA is moving faster than the long-term MA.
More importantly, the RSI has just moved above the 50 line (green circle). The RSI is a momentum indicator and moving above the 50 line indicates that the trend is still bullish.
Daily CRV / USDT Chart | Source: TradingView
Trader @AltstreetBet outlined the number of CRV waves, suggesting the token will rebound to a new all-time high.
It seems that the entire move from November 2020 to May 2021 (highlighted) is a long-term wave. If so, the current profit is part of the third wave of a five wave bullish pulse. Wave three is usually the hottest.
The potential target for the top of the third wave (white) is $ 8.34. This gives 1: 3 waves on a scale of 1: 1.61 which are common with such upward movements.
The number of partial waves is shown in black.
CRV / USDT 3-day chart | Source: TradingView
You can see the CRV Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto