Published 7 hours ago
On August 14th, the CRV/USDT pair reverted from the $1.44 resistance with an evening star candle. The resulting downfall accelerated by the widespread correction in the crypto market tumbled the price by 31.5%. However, the retracement rally has halted at $1 psychological support projecting some recovery signs.
Key points from CRV analysis:
- The CRV chart shows the possibility of forming a double bottom pattern
- A 20-day EMA provides dynamics resistance to coin price
- The intraday trading volume in the CRV token is $91.3 Million, indicating a 5.8% loss.
Source- Tradingview
The CRV price plunged to the $1 mark, evaporating nearly 58-60% of the June-July recovery. The buyers tried to recover from this psychological level but couldn’t surpass the $1.23 and reverted back. On August 29th, the coin price rebounded from this support with a bullish engulfing candle, validating this level as a high accumulation zone.
Today, the coin is 1.85% up, and trying to follow up on the bullish reversal. Though the CRV price breached a minor resistance of $1.078, the volume activity is yet to pick to confirm buyers’ commitment.
Also read : Just-In: Binance Freezes $450K Stolen From Curve.Finance (CRV)
Anyhow if the buying pressure sustains, the price may surge 13% higher to $1.23. This bull run would complete the formation of a double bottom pattern. This price pattern is quite well known for trend reversal and may assist CRV buyers in resuming the prior recovery.
Thus, a possible breakout from the $1.23 neckline will accelerate the buying momentum and push the prices 16% higher to hit $1.44.
On a contrary note, altcoin may plunge below $1 support if the bullish momentum can’t sustain above the $1.08 or $1.23 mark.
Technical analysis
Relative Strength Index: A bullish divergence concerning the two reversals from the $1 support indicates growth in underlying bullishness. Moreover, the indicator slope above the midline will reflect the traders’ confidence in recovery activity.
Bollinger band: this indicator suggests the CRV price is witnessing a minor bullish pullback which eventually reverts and extends the price correction.
- Resistance levels- $1.23, and $1.44
- Support levels- $1 and 1.08
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bullish-pattern-spotted-on-crv-chart-whens-the-right-time-to-buy/