Curve DAO (CRV) Price May Increase Strongly Thanks to Launch of Stablecoin CRVUSD
Curve DAO (CRV) price is in the process of confirming the previous key dynamic resistance line as support. If successful, it could retest the yearly high of $1.3.
On May 4th, Curve DAO officially launched its CRVUSD stablecoin. This could have a positive impact on the price of CRV in May, especially if CRVUSD gets listed on major exchanges.
The price of Curve DAO (CRV) has fallen below the 20-week MA since breaking 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.
The price of CRV then rallied strongly 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 the long-term trend. Therefore, the long-term downtrend may have ended.
However, the price has been rejected by the long-term resistance level of $1.3 and is currently flipping this MA into 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 its might.
Indeed, after breaking below this MA earlier in the week, the price of CRV bounced from the Fib support level of 0.5 and is now in the process of reclaiming it. If successful, the bulls will make another effort to break out.
The 4-hour chart shows that the price of CRV has bounced strongly from the horizontal support level of $0.88, indicating strong buying pressure at lower levels. However, the price has been rejected by a small resistance zone at $0.98.
A positive signal is that the 4-hour RSI has broken above the declining resistance line and confirmed it as support (green arrow). Such breakouts in the RSI often lead to similar breakouts in price action.
Therefore, the price of CRV is likely to break above the small resistance zone at $0.98 and move towards the next resistance level at $1.1.
Both technical and fundamental analysis support further upside for CRV. The nearest target is $1.1 and higher towards $1.3.
Breaking the small resistance zone at $0.98 will confirm this possibility.
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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