As the price of Bitcoin [BTC] and various alternative coins goes through fluctuations, Curve DAO [CRV] seems to be forging its unique path.
Starting from a low of $0.687, Curve Dao has been showing consistent upward movement on the price charts for three consecutive days.
In recent days, this altcoin has reached a peak of $0.93. At the present moment, Curve Dao is trading at $0.836, marking a 7.33% increase in just 24 hours. Before this surge, CRV had been on a downward trend, declining by 22.94% over the week.
Given this apparent trend reversal, the key question arises: can CRV continue to resist the prevailing bearish sentiment in the crypto markets and sustain its upward momentum?
Evaluating CRV’s Performance
Analysis from CryptoCrypto indicates that Curve Dao is gaining momentum upwards due to increasing accumulation from both individual retail traders and large holders.
An observable surge in accumulation among significant holders is reflected in the rise of the supply held by whales, from 1.44 billion to 1.48 billion tokens.
This spike suggests that whales have acquired an additional 400 million tokens in recent weeks. Such accumulation by whales indicates their trust in the market and their expectation of a price surge in the near future.
Moreover, CRV’s Spot netflow has remained negative in the past week, suggesting that investors are actively accumulating CRV. A negative netflow implies that most traders are transferring their assets from exchanges to private wallets or cold storage.
This behavior typically indicates accumulation and a positive long-term perspective. Moving assets off exchanges reduces immediate supply.
Furthermore, the bullish crossover on CRV’s Stoch RSI also supports the optimistic outlook. This crossover demonstrates that recent prices are approaching their highs, indicating a growing bullish momentum.
These indications collectively suggest a potential shift from a downtrend to an uptrend.
Lastly, CRV’s MVRV ratio reveals that the asset is presently undervalued, marked by a negative score of -3.07. While signaling a short-term bearish sentiment, this undervaluation presents a buying opportunity as investors look to capitalize on the dip.
Continuation of the Uptrend
In essence, Curve Dao is defying the prevailing bearish trend due to increased accumulation as new buyers enter the market to leverage the dip. With both retail traders and whales demonstrating confidence, it appears that CRV is poised for a reversal in trend, possibly maintaining its upward trajectory.
If these circumstances persist, CRV might experience further price increases and surpass the $1.1 resistance level. However, in the event that bearish sentiment overtakes bullish momentum once more, CRV could face a decline to $0.69.