Curve DAO's Relief Rally Meets $0.38 Resistance: Should You Buy or Sell?

Summary:
The Curve DAO token (CRV) has seen fluctuations recently, featuring a bounce from lows but facing resistance as it attempts to recover. This article examines the current trend and charts to help you make an informed decision on whether to hold, buy, or sell your CRV tokens.

Key Takeaways

The Curve DAO token has been on a downward trend since August, with price fluctuations affecting trader decisions.
Recently, CRV bounced from a low of $0.331 to approximately $0.385, a 16% increase in just over four days.
The $0.372 level has become a significant resistance point, suggesting potential further decline.
The prevailing bearish trend remains intact, with traders advised to exercise caution.

Curve DAO's Relief Rally Meets $0.38 Resistance: Should You Buy or Sell?

Analyzing the Recent CRV Bounce

The Curve DAO token has been experiencing a decline since August. Initially, it broke below $0.37, leading to expectations of a drop towards long-term support at $0.243. However, CRV only fell to $0.331 before rebounding to $0.385, marking a notable 16% increase within a four-day span.

This unexpected bounce has raised questions: could it signal the beginning of a bullish reversal?

CRV 1-day Chart
Source: CRV/USDT on TradingView

Despite the recent bounce, the overall market sentiment remains bearish. The On-Balance Volume (OBV) has not shown significant movement, indicating that one day of buying activity is insufficient to overturn several months of consistent decline. Additionally, the moving averages support this trend by further confirming the downtrend's strength.

The horizontal resistance at the $0.372 level has been reestablished after the recent bounce, suggesting more downside could follow for CRV.

Exploring Less Likely Outcomes

CRV 1-hour chart
Source: CRV/USDT on TradingView

Looking at the 1-hour chart, the latest bounce briefly climbed above the imbalance zone identified on the H6 timeframe and flipped the $0.372 resistance into support. However, in recent trading hours, this support has been lost to bearish pressure. This shift diminishes the likelihood of CRV rallying further to $0.4 or beyond.

Traders' Advisory — Bearish Sentiment Prevails

Traders should note that the bounce to fill the imbalance and test the lower timeframe swing point at $0.384 might have been an attempt to grab liquidity. Although the short-term volatility might have cleared out some short positions, the prevailing sentiment for swing traders should remain bearish.

Indications suggest that CRV may trend lower, potentially dipping back below the critical $0.33 level, which is a pivotal point on the short-term Fibonacci extension chart.

Conclusion

Disclaimer: The information presented here is for informational purposes only and does not provide financial, investment, or trading advice. This article reflects the author's opinion and should be considered as such.