Curve DAO’s relief rally faces $0.38 resistance: Should you buy or sell?

The Curve DAO token has been on a downtrend since August. Its newest breakdown under the $0.37 stage was anticipated to yield a drop to the subsequent long-term help at $0.243.

As an alternative, CRV solely dropped to $0.331 earlier than bouncing to $0.385.

This bounce was a 16% transfer in simply over 4 days. May or not it’s the beginning of a bullish reversal?

Understanding the bounce and the potential of a CRV uptrend

In an earlier AMBCrypto report, the altcoin was assessed to be in a bearish pattern. The 16% value bounce was sudden, and it additionally stuffed an imbalance on the 6-hour chart identified earlier.

The capitulation narrative and whale promoting weren’t sufficient to stop this bounce, however the longer-term pattern remained intact.

Supply: CRV/USDT on TradingView

The long-term pattern stays bearish. The OBV has hardly stirred, and in the future of shopping for can’t reverse months of a downtrend. The transferring averages bolstered the worth motion, capturing the downtrend’s prevalence.

The horizontal resistance at $0.372 has been retested as resistance. This was the results of the bounce. Extra draw back stays doubtless for CRV.

Charting the much less doubtless state of affairs forward

Supply: CRV/USDT on TradingView

The 1-hour chart confirmed that the latest bounce went simply above the H6 timeframe’s imbalance (white field) and briefly flipped the $0.372 stage to help. Previously few hours of buying and selling, this help has been misplaced to the bears.

Due to this fact, the much less doubtless state of affairs was that the Curve DAO token would rally increased and push towards $0.4 and better.

Merchants’ name to motion — Bearish regardless of the swift bounce

The transfer to fill out the imbalance and check the decrease timeframe swing level at $0.384 may have been a liquidity seize.

Whereas the short-term volatility may have shaken out quick positions, the bias of swing merchants must stay bearish.

It’s attainable that CRV would proceed to pattern decrease and fall again under the $0.33 stage, which is a short-term Fibonacci extension stage.

Remaining Ideas

• The 16% CRV bounce throughout the previous 5 days appeared to argue that bulls had discovered their footing and begun a restoration on the worth charts.
• Zooming out to look at the longer-term pattern, it grew to become clear that the bearish pattern was prevalent regardless of the latest bounce, and swing merchants needn’t shift biases bullishly.

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion