Key Takeaways:
- Curve DAO's CRV token prices fell nearly 53% over nine days.
- However, bulls seem to be defending support near $0.6.
NEW DELHI (CoinChapter.com) — Stablecoin exchange Curve’s native token CRV is trying to hold above $0.6 after the altcoin’s prices fell nearly 53% between Jun 7’s high ($1.28) and Jun 15’s intraday low ($0.61).
Furthermore, news of Celsius freezing withdrawals on its platform, and rumors of VC firm Three Arrows Capital (3AC) battling against insolvency did not help investor sentiments. Curve also took to Twitter to reassure its users that they have “good liquidity in tricrypto2.“
TriCrypto is a liquidity-providing token awarded to represent users’ deposits for providing liquidity on Curve Finance.
Also Read: Celsius pauses withdrawals from its crypto lending platform — CEL tanks 70%.
Meanwhile, the downtrend also flipped multi-month descending trendline support into resistance, adding to the headwinds against CRV prices. The trendline helped Curve prices rebound multiple times in 2022. Moreover, the momentum oscillator MACD continues to forecast a strengthening downward momentum for CRV.
In addition, the MACD line and the MACD signal line painted a bearish crossover on Jun 12. A bearish crossover occurs when the MACD line (difference of 12-day and 26-day EMA) moves below the MACD signal line (9-day EMA of MACD). Therefore, traders consider the pattern a sell signal.
If CRV prices continue their downtrend, the token might test support near $0.66. Further downtrend might push CRV prices to $0.53, which previously supported Curve’s native crypto’s price action between Nov 26, 2020, and Dec 22, 2020.
Finally, a marketwide sell-off could push CRV prices to $0.45, which Curve last visited in Dec 2020.
Oversold RSI Might Be Driving CRV Recovery
Curve started the day in the red before bulls’ aggressive buying pushed prices up, going from Jun 15’s low of $0.61 to reaching an intraday high of $0.77.
CRV’s relative strength index is currently at oversold levels, with a value of 27.62 on the daily charts. The RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. When the RSI goes below 30, the asset enters the oversold region.
Also Read: Crypto fund Three Arrows Capital (3AC) could die amid liquidation woes.
An oversold RSI indicates a bullish trend reversal is on the cards. As a result, traders relying on RSI might start a buying spree that would raise the token’s prices.
If CRV prices continue their recovery, the token would first face resistance from its friend-turned-foe multi-month trendline near $0.85. A breakout above the immediate support might help Curve prices target resistance near its 20-day exponential moving average (20-day EMA, red wave) at $1.1.
Finally, a sustained uptrend might see CRV challenge resistance from its 50-day EMA (purple wave) mear $1.41.
At the time of writing, CRV was trading at $0.76, up 4.3% on the day.
