Amongst the top performers of the day, Curve managed to do well for its investors by noting a 22% rise throughout this week, particularly on 22 and 23 April, which cumulatively accounted for 21% of the entire increase.
But Curve…
…still has a long way to go, given it’s nowhere near its all-time high of $6.9. Down by 62.19% from that point, CRV is currently trading at $2.64, struggling even to touch the 2-month-long resistance of $3.07, which happens to coincide with the 23.6% Fibonacci level.
This level has once and again proven to be critical support and resistance when it comes to determining the active trend.
Once tested as resistance, it becomes very difficult for CRV to breach through, and if tested as support, it protects CRV from falling through despite the broader market’s bearishness, as seen in March and April last year.
Thus, as soon as CRV tests $3.07 as support, CRV would be in a better position to climb ahead. It already has the support of the market, with the altcoin marking a bullish crossover this week and the RSI leaping into the bullish zone day before yesterday.
However, it might face some resistance thanks to investors’ apprehensions. On-chain, their presence keeps diminishing with every passing day, noting less than a thousand active users this week.
Curve active adresses | Source: Santiment – AMBCrypto
Secondly, the lack of participation and negative sentiment also resulted in the DeFi protocol losing investment in it as the TVL has dropped by $1 billion within 72 hours. Yet, it continues to command a 9.4% domination in the DeFi market.
Curve DeFi TVL | Source: DeFi Llama – AMBCrypto
Although the concern stays since the overall adoption of the token has reduced severely between December and today.
The network growth, to be specific, has observed a 73.7% decline, and given the lack of change in the rate at which CRV changes hands, it is understandable why the adoption rate has plummeted.
But if Curve can somehow find support in the broader market and rally above the aforementioned resistance, these figures could notice a spike or two as well, pointing to a better month of May for the altcoin.
Source: https://ambcrypto.com/why-curves-struggles-seem-to-continue-despite-a-22-rise-this-week/