The age of this support line is 252 days old. Therefore, whether the market breaks through it or it stays intact may determine the direction of the future trend on Curve DAO.
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Curve DAO is trading at a key level after a rebound
In the opening week, the Curve Finance project faced a major hack that resulted in more than $40 million in lost assets and a sharp drop in the price of the Curve DAO native token (CRV). Even worse, the repercussions of the Curve Finance hack immediately began to spread throughout the ecosystem, threatening even heavyweights like the Aave protocol.
According to technical analysis of the daily chart, CRV has been rising along an ascending support line since November 2022. The price has bounced off this line three times so far (green icons). However, after a third bounce on July 30, the token ducked below that line the next day, falling to a low of $0.48.
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A rebound followed, however, and the price formed a long lower wick, confirming the $0.48 horizontal area as support. The rebound saved the price from falling to a new yearly low. Curve is now attempting to recover above an ascending support line that has been in place on the chart for 252 days, barring the current anticipated breakout.
A recovery above this line could send the coin up 50% to the next resistance level of $0.88. Meanwhile, a rebound from it is likely to lead to a fall to the $0.48 support area.
A rebound from it is likely to lead to a fall to the $0.48 support area.
Source: TradingView
Daily RSI is giving bullish signals, supporting the continuation of the rebound. This momentum indicator is below 50, but it has generated a significant number of bullish divergence signals (green line). It is a phenomenon where a price drop is accompanied by an increase in momentum, which reduces the significance of the price drop. This divergence often precedes strong upward movements.
CRV forecast: the decline may be corrective
In the meantime, the wave analysis of the daily timeframe suggests that the Curve growth, which began in November 2022, is a five-wave bullish price structure (white color).
If this is indeed the case, then the subsequent decline is a correction. The fact that it is trading inside a descending parallel channel is consistent with this probability.
But price is still trading at the bottom of the channel. The market needs to make a bullish breakout from the bullish trend to confirm it.
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If that happens, Curve could rise 170% and reach the next resistance at $1.55.
Source: TradingView
Despite this bullish outlook, a CRV closing below the channel support line would mean that the trend remains bearish. In that case, the November 2022 low may not hold, and the price would fall another 47% to $0.30.
At that point, the November 2022 low may not hold, and the price would fall another 47% to $0.30.