As Bitcoin is dragging the entire crypto market lower, the CRV token has taken quite a hit. However, we are seeing low price rejection, which could be heralding a trend reversal of the Curve DAO token.
At the time of writing, CRV is trading at $ 3.96, accumulating a slight gain of 3.22% in the last 24 hours, but maintaining a loss of 24.50% in the last 7 days.
Its market capitalization is $ 1.72 billion, thus ranking 73rd in the Crypto Online ranking.
Curve is a decentralized platform for the exchange of stablecoin, through an automated market that manages the liquidity of the protocol.
CRV is the native token of the decentralized autonomous organization of this DeFi. This organization uses the Aragon creation tool that works on the Ethereum network, which manages to connect different smart contracts to improve liquidity.
During the last days, while prices in the crypto market fell, this protocol was quite active, demonstrating its usability in times of uncertainty. From December 2 to today, $ 2,688 million were traded.
Technical analysis of the CRV token
On the daily chart of the CRV token we see that the price quickly plummeted on December 4 to support at $ 2.69. However, the bearish intention was quickly rejected, and we now see that much of the decline was wrapped up.
Right now CRV is trading at $ 3.91, recovering strongly from the fall, but there is still no bullish determination that tells us that the price will go higher in the next hours / days.
At the moment it seems more likely that we will see some more selling in the short term, but the large support zone around $ 3.00 may slow the decline, and make way for a resumption of the larger trend. A good confirmation that this will be the case is to wait for the downline that you marked in the following chart to be crossed.
From this time frame we see that the bullish rally of a few weeks ago was stopped when the price ran into resistance at $ 5.78.
We now see that the CRV token manufactured a fairly clear double top, which could indicate a trend reversal.
However, in an attempt to confirm the validity of this figure, the bears did not show much determination, leaving rejection of low prices, and telling us about the possibility that the decline has already bottomed out.
Recently, the price got support at $ 3.61, and if it maintains it, it is likely to be the starting point to look for new annual highs.
In the event that it is traversed we could see a bit more volatility to the downside, but it would not be really worrisome as long as the support at $ 2.69 holds.
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