Recently, Curve DAO [CRV] has seen a 2.5% increase in price and a 0.80% rise in trading volume over the last 24 hours, as reported by Coingecko.
At the moment, CRV appears to be gaining momentum in a bullish direction after encountering a crucial support area above its descending wedge on the weekly chart.
Previously, the altcoin managed to break out of the descending wedge in late 2024 after spending two years in a price consolidation phase within it. Following a brief pullback, the question now is whether the ongoing retest will propel CRV towards the important $1.59 level?
CRV: Breakout and Retest
Upon examining the weekly chart, CRV seems to be retesting its prior key resistance level at $0.45 which is now functioning as its support. On a smaller time frame, bullish momentum is gaining strength above this critical level as CRV constructs an uptrend.
Currently trading at $0.48 post the support retest, analyst Solberg Invest has suggested that if the token maintains its bullish stance, the immediate target could be the previous resistance level of $1.59 in the short run.
Market Dynamics, On-chain Metrics, and Holder Sentiment
Latest data from IntoTheBlock indicates that whales hold approximately 85% of CRV, with 76% of holders having maintained their positions for over a year.
In addition, only 10% of holders are in a profitable position, indicating a likelihood of capitulation if the bullish trend reverses, or conversely, a strong rebound due to the conviction of long-term investors.
Analysis from Glassnode reveals a consistent increase in CRV wallet addresses over the past two years, indicating a prevalent long-term optimistic sentiment.
Furthermore, the 7-day exchange netflow stands at -1.48M, indicating potential accumulation by whales and a reduction in selling pressure from the market.
As per data from Cryptowaves, CRV’s 24-hour RSI currently stands at 37, climbing to 49 on the 4-hour timeframe. Meanwhile, Open Interest has seen a 1.05% surge, and the Long/Short Ratio sits at 1.45, as per Coinalyze, affirming CRV’s positive bounce-back.
Potential Scenarios
If CRV can maintain its upward momentum above $0.45 amid the growing number of addresses, whale accumulation, and long-term confidence, there is potential for it to reach $1.59 in the coming weeks.
Given its correlation of 0.94 with Bitcoin, any upward movement in BTC could further support CRV’s bullish trend.
However, failure to sustain above this critical support level may lead to a decline towards $0.30, prompting frustrated investors to sell off their holdings.
Observing CRV’s movement above this crucial level and monitoring whale activities could offer additional insights into its future trajectory.