Curve DAO [CRV] has been facing a downward trend on both daily and weekly charts, with the selling pressure behind the token remaining strong. The recent market structure of the CRV token has been bearish, indicating a lack of buying interest in the market. The price has been consistently testing the lower Bollinger Band as a support level, while the 20-day moving average has been acting as a resistance.
At the time of writing, the price of CRV was approaching the $0.45 demand zone, which could potentially serve as a bullish order block from early April. This area of demand has historically triggered a strong bullish reaction in the price of CRV, especially during Bitcoin’s recovery phase. A rally in Bitcoin could potentially ease the selling pressure on CRV and lead to a trend reversal in the coming days.
On the on-chain front, there are signs of a potential buying opportunity for CRV. The weighted sentiment, which analyzes social media engagement, is slightly bearish, indicating a lack of positive sentiment in the market. The MVRV ratio, which measures the profitability of CRV holders over the past three months, is currently at -18%, suggesting that holders are facing losses.
Despite the downtrend, the mean coin age has been trending higher, indicating network-wide accumulation of CRV tokens. This accumulation, combined with the increase in holders at a loss, suggests that the price of CRV may be approaching a bottom. Investors could potentially buy CRV at a discounted price based on these metrics.
Overall, while the market sentiment for CRV remains bearish, there are indications of a potential trend reversal in the near future. Investors should closely monitor the price action of CRV and keep an eye on Bitcoin’s movements, as they could play a significant role in determining the future direction of the token.
Please note that the information presented in this article is based on analysis and opinion, and should not be considered as financial advice. It is always recommended to do your own research and consult with a financial advisor before making any investment decisions.