- CRV broke out of a descending wedge, signaling bullish momentum with a potential 317% upside if buying pressure sustains.
- RSI shows bullish divergence, hinting at weakening bearish pressure, while OBV suggests past selling may be slowing.
- DeFi growth fuels CRV’s potential, with stablecoin dominance positioning it for a surge as market participants accumulate.
According to CrediBULL, Curve Finance’s native token, CRV, is showing strong bullish momentum as the DeFi sector gains traction. The price action has formed a descending wedge, typically a bullish reversal pattern. CRV has recently broken out, signaling the potential for a rally. Besides, technical indicators suggest that bearish pressure is diminishing. If momentum sustains, CRV could experience a substantial upside move, targeting the key high-timeframe (HTF) supply zone.
CRV Shows Signs of Strength
CRV/USDT is currently consolidating after its breakout from a descending wedge. The price action previously formed lower highs and lower lows, reflecting a persistent downtrend. However, a breakout in mid-March sparked renewed optimism. The price climbed from the $0.3668-$0.3670 range to the current level of $0.5373, marking a 7.12% increase.
Moreover, There is clear bullish divergence in the Relative Strength Index (RSI). As price action continued to fall, the RSI, which is currently at 37.44, has been making higher lows. This suggests that the bearish momentum is waning. Furthermore, the On Balance Volume (OBV), which is still negative at -107.44 billion, suggests that there has been previous selling pressure. The halt in the declining trend, however, suggests a possible reversal.
DeFi Growth Supports CRV’s Upside Potential
DeFi total value locked (TVL) is expected to expand in the coming year, with stablecoins playing a crucial role. CRV dominates stablecoin liquidity, making it a key player in this sector. The next resistance zone lies between $0.80 and $1.40, a HTF supply area. Historically, this zone has caused price reversals. However, sustained buying pressure could push CRV toward this target, resulting in a projected 317.36% increase.
The next target if CRV continues to rise, is between $0.6760 and $0.67763. According to past price behavior, this region could be a resistance zone. However, if present levels are not maintained, there may be more consolidation or retesting of recent lows between $0.3120 and $0.36668.
