Curve investors could watch these levels after CRV’s 5% rally

Disclaimer: The conclusions of the following analysis are the sole opinions of the author and should not be taken as investment advice.

  • CAD Curve [CRV] is up 5% in the last 24 hours
  • The price/volume divergence could lead to a short-term price correction

Curve [CRV] rebounded after losing more than 20% in recent days. The rally responded to a voted proposal on the AAVE network to secure CRV and other tokens in extreme market conditions and migrate to AAVE V3.

Read curves [CRV] price prediction 2023-2024

At press time, CRV was trading at $0.672 but was encountering significant resistance to the north. Additionally, a price-volume divergence could complicate any attempt to continue the price rally.

CRV faces an immediate bearish order block around $0.715; will the bulls be able to get around it?

Source: Trading View

A Fibonacci retracement tool (yellow) was placed between the highs and lows between November 20 and 29. The white lines are trend lines marking important support and resistance levels during the time frame drawn.

It was seen that the recent CRV price correction found support at $0.633, near the 61.8% Fib retracement level. Additionally, this current support level provided the bulls with an opportunity to initiate a fresh price rally at the time of writing.

However, the rally faced significant resistance at the 78.6% Fib level ($0.682) and the bearish order block zone around $0.715. If the bulls break the resistance at $0.682, the new target could be $0.715.

The Relative Strength Index (RSI) edged up slightly and stood just above the neutral 50 level. This showed that the bears were losing ground and the bulls were approaching to take full control. Although a near-neutral mark did not indicate clear strength either side, the rising curve suggested that the bulls might move higher.

Furthermore, the equilibrium volume (OBV) also registered a slight rise after a series of highs followed by a flat line. This showed that the bulls had enough trading volume to push them forward. Therefore, the short-term outlook for CRV between the 61.8% Fib level and $0.715 could be bullish.

However, a break below the 61.8% Fib level ($0.622) would negate the tilt above. Such a break could cause a downtrend towards the 50% Fib level ($0.580) or lower.

The price/volume divergence could lead to a price correction

Source: Santiment

According Saniment, CRV showed decreasing trading volume as prices increased. Additionally, the active address rose steadily over the past hour of press, but then fell. This indicated a lower number of accounts participating in CRV trading and could indicate a possible price correction.

Interestingly, CRV lost the $0.64 level after Bitcoin [BTC] lost $16.2. Therefore, short-term CRV investors should monitor the performance of BTC and the current divergence between price and volume.

Leave a Comment