CRV Price Action At Critical Juncture, Descending Channel\'s Support Line Key For Potential Reversal

The Curve DAO token (CRV) has seen significant activity recently, with 51.4 million CRV tokens locked in just four days. The amount represents about one-third of all CRV emissions for 2024.

Investors have locked up 51.4 million CRV tokens in just four days, which is about one-third of all CRV emissions for 2024. This large amount of CRV being locked up by investors indicates strong confidence and a long-term commitment.

The surge in locking activity also had a positive impact on the veCRV per CVX ratio, which moved from 5.5 in June to 6.44. This shift suggests an increased value of veCRV being allocated per CVX token, reflecting a bullish sentiment among investors.

Moreover, the locking activity reduces the circulating supply of CRV, which could potentially lead to upward price pressure.

CRV Price Testing Multi-Year Channel Support

A descending channel, which is more visible on the monthly timeframe, could be predicting a short-term bullish outlook for the Curve DAO token’s price. However, recent market activities and locking trends could signal a potential reversal.

The Curve DAO token’s price has rebounded from the channel’s support line. If the CRV price starts moving upwards from the descending channel, the token could rise to the upper trendline resistance around $0.575.

Breaching the upper trendline resistance could signal a bullish reversal for CRV. Even if the Curve DAO token fails to break above the pattern, a move to $0.575 would mean a 105% spike from current prices.

On the other hand, if the price fails to break upwards and continues its descent, it could target around $0.108. This level represents a significant support area that CRV price would likely test if bearish momentum continues.

The volume bars at the bottom of the chart indicate a recent increase in trading volume, which often precedes significant price movements. The recent surge in locked CRV tokens and the corresponding impact on the veCRV per CVX ratio suggests a bullish sentiment among long-term investors.

CRV Price Struggles With EMA Resistance

The Curve DAO token’s price rose by over 1.59% on July 10, bucking the wider market bearish trend. The token continued the uptrend as bulls tried to flip the $0.309 resistance into support.

Another bearish cue against the Curve DAO token is the 20-day EMA (red wave) trendline dynamic resistance, which has been troubling CRV price action since June 7.

However, the CRV price moving inside a descending channel pattern complicates matters. If CRV can hold this support, a recovery rally could see the price rise to the $0.309 resistance level, which corresponds to the 61.8% Fibonacci retracement.

Further upward momentum could target the 20-day EMA (red wave) resistance at $0.347, near the 78.6% retracement.

On the downside, if selling pressure persists, CRV could drop to the support level around $0.264, aligning with the 38.2% Fibonacci retracement. A break below this level might see the price test the stronger support at $0.238, corresponding to the 23.6% retracement.

The RSI is currently at 45.28, suggesting CRV is in oversold territory and may see a potential rebound.

Curve DAO token’s price action is at a critical juncture, and the descending parallel channel’s support line is a key factor to watch for a potential reversal.

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