OBV Indicator Foretells Breakout from Triangle pattern

A bearish reversal from shared resistance of descending trendline and 100-day EMA triggers the next bear cycle within a descending triangle pattern. The falling price has devalued the Curve Dao(CRV) price by 12.8% and plunged below 20-and-50-day EMA. Thus, the altcoin would continue to descend and may retest the bottom support($2-$1.9). 

Key points: 

• The OBV chart shows an evident bullish divergence
• The altcoin would retest the $2-$1.9 support 
• The intraday trading volume in the CRV token is $291.2 Million, indicating a 46% gain.

Source- Tradingview

After a sudden drop in late January, the Curve Dao(CRV) price started forming new lower highs responding to a descending trendline. However, strong support at $1.9 has limited any excessive loss, bolstering the formation of a descending triangle pattern.

Over the past three months, The CRV price has been narrowing within this pattern and gradually approaching its breakout. The recent reversal from the descending trendline had tumbled the altcoin by 15% but reverted immediately from the $2.17 mark with a morning star candle.

The CRV price currently trades at $2.43, with an intraday gain of 9.34%. Furthermore, the altcoin price range is stuck in a no-trading zone, and therefore traders must wait for a genuine breakout before entering the market.

If CRV price breached the bottom support of $1.9, the sellers would pull the altcoin to the $1.5 mark.

Alternately, a bullish breakout from the overhead resistance may drive the coin 20% higher to $3.2, followed by $3.7.

Technical analysis

A sideways walk-in Bollinger band highlights the range rally in CRV price. A fallout retest to the indicator‘s midline support suggests the price would sink to $1.9 support.

Contrary to the lower low formation in price action, the OBV slope trending higher indicates a higher possibility of resistance breakout in the upcoming sessions.

• Resistance levels- $2.7 , and $3.2
• Support levels- $2-1.92 and $1.24

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.