A market maker automates the management of liquidity for Curve, a decentralized exchange for stablecoins. Curve, launched in January 2020, is now synonymous with the decentralized finance phenomenon and has seen significant growth in the second half of the year. As of August, Curve launched a decentralized autonomous organization (DAO) with the CRV token as its in-house token. In order to connect multiple smart contracts for users’ deposited liquidity, the DAO uses Aragon, an Ethereum-based creation tool. Let us check the technical analysis of CRV.
The CRV opened at $2.27 on the 5th of September and closed at $2.43 on the 12th of September. Thus, there are no significant changes in the price, with the volatility being quite low.
In the last 24 hours, the price has appreciated by 0.86%. The current price is $2.30.
CRV Technical Analysis
CRV is trading in a very narrow range for the past few days. There is a lot of anticipation around CRV in the crypto market, and crypto experts are expecting it to double from here. CRV is forming the same pattern as it formed in January. Therefore, we can expect a pump in the price of CRV. As compared to other Defi altcoins, CRV is quite undervalued. Let us now look at the reasoning for the same.
MACD and EMA lines are above the zero range, suggesting a buy. However, there is a bearish crossover on the chart, the MACD and EMA lines are rallying closely on the chart, suggesting we might expect a trend reversal.
The RSI is making a double top pattern on the chart. After touching 56.69%, it took a downswing and is currently at 52.77%, suggesting that the selling pressures are pulling the RSI further down.
On the daily chart, there are no significant movements in the OBV.
Day-Ahead and Tomorrow
The CRV price is expected to find support at the FIB support level of $1.98, which is a crucial support level. If the price breaks down from this level, it will confirm the bearish trend. However, in the past, CRV had always maintained a bullish trend despite shakedowns.
On the other hand, the resistance level is at $2.51. A breakout from this level will highlight the next resistance level of 2.67. Subsequently, traders can take a long position accordingly.