Curve DAO Token (CRV) has fallen below a key horizontal area at $3.50. Until this zone is restored, the trend cannot be considered bullish.

Weekly Outlook

The DAO Token curve has been falling since hitting an all-time high of $6.80 on Jan. 4. So far, it is down 59.35%, resulting in a local low of $2.36 on Jan. 24.

CRV has recovered after hitting this low, confirming the ascending support line that has been forming since January 2021. This is the fifth time the price has confirmed this line, showing that it is a strong support level.

On the other hand, CRV has also dropped below the $3.50 region, which previously acted as resistance at the all-time high and is expected to act as support. Therefore, the trend cannot be considered bullish until the price recovers to this level.

Weekly CRV/USDT Chart | Source: TradingView

Future CRV movement

Technical indicators on the daily time frame are giving a general bearish signal.

The MACD, formed by the short-term and long-term moving averages (MAs), is turning down and in negative territory. This is a bearish signal and means that the short-term MA is slower than the long-term MA.

The RSI, which is a momentum indicator, is turning bearish and has fallen below the 30 level, which is also a sign of a downtrend.

Therefore, although CRV is trading above the horizontal support and Fib support at $2.70, there is no bullish signal to suggest a reversal.

Daily CRV/USDT Chart | Source: TradingView

count waves

Trader @TheTradingHubb tweeted a chart and said CRV is likely to fall back to $1.50.

The source: Twitter

Besides the bearish technical indicators, the number of waves also shows that the downtrend of CRV is not over yet.

It looks like CRV is currently completing the fourth wave of a 5-wave backward pulse.

Therefore, further downside is to be expected after the current rally. In that case, the $1.50 zone should provide support and complete a corrective pattern.

CRV/USDT 6 hour chart | Source: TradingView

You can see the CRV prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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