The price of Curve DAO (CRV) has broken above an important dynamic resistance level and is currently in the process of confirming it as support. If successful, it could retest the yearly high at $1.3.
Recently, there have been rumors that the CRVUSD stablecoin of Curve DAO is very close to being launched. This could have a positive impact on the price of CRV in the future.
20-week MA
The price of Curve DAO (CRV) has been trading below the 20-week MA since it broke below it in January 2022. This line has rejected the price multiple times and led to a yearly low of $0.4 in November 2022.
Subsequently, CRV rallied and broke above the 20-week MA with a large bullish candle. This is an important development as the 20-week MA is often used to determine long-term trends. Therefore, the long-term downtrend may have ended.
However, the price was rejected by the long-term resistance zone of $1.3 and is currently in the process of flipping the MA as support once again (blue arrow). As this MA coincides with the Fib retracement support zone of 0.5-0.618 ($0.8-$0.9), the bulls is likely to defend it with all their might. If successful, the bullish camp will make another effort to break out.
Short-term outlook
The 4-hour chart shows that the price of CRV is trading inside an ascending parallel channel after bouncing from the $0.9 support zone. This is a bullish pattern that often leads to a breakout in the majority of cases.
In fact, the price is trading at the upper end of the channel and the bullish divergence line of the RSI indicator is still intact, further reinforcing this view.
If a breakout occurs, the price of CRV could rise to the nearest resistance zone at $1.1.
Conclusion
The technical signals from the short-term timeframe indicate that the price of CRV will successfully confirm the 20-week MA as support once again. If so, it could retest the yearly high of $1.3.
This view will be invalidated if the price breaks below the Fib retracement support zone of 0.5-0.618 at $0.8-$0.9.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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