The bullish structure of the Curve DAO Token (CRV) will remain as long as the token trades above the $ 3.70 region that is currently serving as support.
Important price zone
On October 25, CRV broke the $ 3.70 horizontal resistance area that had existed since February 2021. On January 4th, it continued to hit a high of $ 6.80.
After the breakout, CRV confirmed the USD 3.70 area as support. While it deviated downwards in December (red circle), it reached this zone again shortly afterwards and continued its upward movement. Such deviations are considered bullish developments as the previous collapse cannot be sustained.
Additionally, the token is trading along an ascending support line that is currently coinciding with the USD 3.70 support area.
Daily / BUSD chart | Source: TradingView
Technical indicators in the daily timeframe are relatively bearish as both the RSI and MACD are bearish.
The RSI is a momentum indicator and values below 50 (red symbol) are considered bearish. It remains to be seen whether the current decline is a deviation, similar to December (red circle).
The MACD, formed by the short and long-term moving averages, is also about to break into the negative zone. A cut in this zone would be a downward trend.
Daily CRV / BUSD chart | Source: TradingView
The two-hour chart shows that CRV is trading within a descending parallel channel. Such channels are often viewed as a correction pattern, meaning that a breakout across the channel can be expected.
Additionally, both the RSI and MACD create significant bullish divergences, which supports the possibility of a breakout.
In this case, the next resistance is at $ 5.45.
CRV / BUSD 2-hour chart | Source: TradingView
CRV / BTC
Trader @CredibleCrypto tweeted a CRV / BTC chart saying the pair will remain bullish as long as it trades above the Satoshi support area of 8400.
The source: Twitter
The CRV / BTC chart also looks bullish. The pair broke the 8400 satoshi resistance area in late December and hit a high of 14,700 satoshis on Jan 4th. The high was hit just above the external fib retracement resistance at 1.61.
A potential bullish divergence has developed on the RSI (green circle) which, if held, could act as a catalyst for the continuation of the uptrend.
The next resistance will be at 19,220 satoshis created by the outer fib retracement resistance level at 2.61.
Daily CRV / BTC Chart | Source: TradingView
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews