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- Curve DAO token’s bull rally gets interrupted by the critical resistance of $2.40
- CRV bounced from a low of $1.81 to a high of $2.52 all in Wednesday’s intraday session
- The CRV /BTC pair is currently trailing at 0.00006417 BTC with a gain of 28.53% at press time
What is Curve Finance (CRV) and what is the market issue the platform is striving to meet?
With the total market capitalization of $83 Billion as of June 2021, stablecoins are becoming increasingly popular among investors in the crypto currency space. The escalating demand to trade in stable coins gives rise to problems like liquidity pools and balancing supply and demand.
Curve Finance is a platform that rewards its users for depositing their coins and providing liquidity to the network. The main goal of Curve.fi is to essentially bring their users on board as a market maker.
What makes Curve Finance different from other liquidity pools like Uniswap?
While Uniswap liquidity pools are only paired with Ethereum, Curve.fi allows its users to deposit one stable coin and have it provide liquidity across multiple different coins.
Example: Let’s assume Shashank owns 1000 Tethers. Depending upon the reserve levels and on which pool he intends to deposit into, that 1000 Tether would be broken into a percentage of (DAI, USDT, USDC & TETHER). Rather than earning exchange fees from one coin, using Curve.fi would enable him to earn exchange fees from the entire liquidity pool.
The daily technical chart of CRV highlights the fact that the token has recovered by 97% since the fatal drop in May. The token that lost nearly 63% of its value since Bitcoin’s bloodbath has witnessed gains worth 50% in a short span of three days.
The current price of CRV is $2.49 established on the back of 36% increase in the past 24 hours. Undoubtedly, CRV has been a standout performer of the Defi sector as evidenced by the exponential rise in volume since April 15th.
However, the token is facing rejection around the resistance of $2.50 which is also bombarded by the 50 and 100 EMA.Today’s massive green candlestick brings attention to the fact that CRV’s price action has become rock solid after flipping the resistance of $1.97 into support. Presuming that the critical EMAs continue to invalidate the efforts of the bulls would lead to CRV discovering that level as support.
The volume of (2.43 M) is higher than the Volume MA (2.01 M) of 20 days. The soaring volume demonstrates the surplus demand of this altcoin since the past couple of months.
CRV Price Chart on the 4-hour time frame
As mentioned above, the CRV bull rally has already taken a ‘U-turn’ from the resistance zone of $2.50. Despite the fact that bears have prevailed, the 20 EMA is about to approach the 100 EMA. The success of a bullish crossover between these EMAs will expose CRV to retrace towards its previous highs.
However, the above scenario will only hold accountability if the trend sustains above the 200 EMA. The failure of the bulls to help sustain the price above the critical EMA will lead to CRV entertaining a corrective wave. There’s a high possibility that in such a scenario, the price would rebound from the support level of $2.09 (FIB 0.382).
The RSI (bearish) on the 4-hour chart is gradually cooling down after being stuck inside the overbought territory for hours. While an RSI of 69 is not necessarily bearish, further downtrend is anticipated for the price action to stabilize.
The MACD (slightly bearish) is losing momentum as evidenced by the diminishing histogram at press time.
SUPPORT: $1.97, $2.09
RESISTANCE: $2.52, $2.88 and $3.66
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
