The price of Curve DAO (CRV) has rebounded from a significant support level and broken out of a short-term pattern. It may recover in the coming days.
Daily Outlook
The price of Curve DAO (CRV) has been declining along with a descending resistance trendline since reaching its yearly high at $1.3. Most recently, this trendline rejected the price on April 18 (red arrow), leading to a low of $0.77.
The low seemed to have caused a breakdown from the $0.8 horizontal support area, but the price recovered back soon after. This is a bullish development as this support zone is formed by a horizontal support area and the 0.618 Fibonacci retracement level, which usually serves as the end of a correction.
Indeed, the price has rebounded from this zone on May 18 (green arrow). If the upward momentum continues, it could retest the resistance level at $0.98, formed by the horizontal resistance zone and the descending resistance trendline.
A breakout above this level would confirm the end of the correction and could propel the CRV price to its yearly high at $1.3.
Descending Parallel Channel
The 4-hour chart supports the possibility of a price increase based on the daily chart, as the CRV price has broken out of a descending parallel channel and confirmed it as support (green arrow).
This indicates that the price has started a short-term recovery. Therefore, the CRV price is likely to continue rising towards the nearest resistance at $0.98, as mentioned above.
Conclusion
The most probable outlook suggests that the CRV price will continue to rise in the coming days. The nearest target is $0.98, with further targets at $1.1 and $1.3.
This perspective would be invalidated if the price breaks below the support zone at $0.8.
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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