Curve DAO (CRV) Bounces At 305 Day Support Line

Curve DAO Token (CRV) price has been increasing since March 15. It has created a bullish pattern above a long-term bullish structure.

CRV had been falling since reaching an all-time high price of $6.80 on Jan 4. The downward movement led to a low of $1.87 on March 15. 

The low served to validate for the fifth time (green icons) an ascending support line that has been in place since May 23. Due to the fact that the line has been in place for such a long time, it is crucial that the price continues to trade above it. 

Measuring from the all-time high, CRV has decreased by 65%. The next resistance area is at $3.74.

Indicator support increase

Technical indicators in the daily time frame are bullish. This is visible by the bullish divergence (green lines) that have appeared in the MACD and RSI. 

They resemble a double bottom pattern. The double bottom is considered a bullish pattern, meaning that it usually leads to bullish trend reversals.

In addition to this, the RSI has now moved above 50, which is also seen as a sign of bullish trends. 

The six-hour chart supports this assessment since it shows that CRV has broken out from a descending resistance line.

However, it also shows a minor resistance level at $2.75. This is a horizontal resistance and the 0.5 fib retracement resistance level. 

Therefore, it would be expected to cause a short-term rejection prior to the continuation of the upward movement.

CRV wave count analysis

Cryptocurrency trader @JacobEmmerton tweeted a CRV chart, stating that the price began a new upward movement on March 15.

The decrease since the all-time high does look like a completed five-wave downward movement. Therefore, a substantial bounce would be expected, at least towards the 0.382 fib retracement resistance level, and possibly to the 0.5 or 0.618.

The two-hour chart shows that CRV has completed a short-term impulse (red), and is now possibly in wave three of a five-wave upward movement. 

Wave three is usually the steepest and largest out of the bullish waves.

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