- The prices of Curve Dao tokens have experienced a 32% drop in just over two weeks.
- Due to its bearish structure and lack of demand, a drop to $0.42 seemed inevitable.
Curve DAO Token [CRV] has been on a downward trend over the past month, with heavy selling pressure showing no signs of slowing down.
Despite Bitcoin [BTC] seeing some gains since Monday, CRV has failed to keep up with the leading cryptocurrency’s performance.
The token was trading below the lows of June 23rd, indicating strong bearish sentiment. A move to $0.4-$0.42 was anticipated for June.
Curve token unable to maintain $0.7, momentum now firmly bearish
Source: CRV/USDT on TradingView
The strong rally in November and December was met with rejection at the weekly top from early 2023, suggesting a 30-month consolidation phase for Curve DAO.
Despite the altseason in November, there was no setup for an uptrend on the weekly timeframe.
The consolidation ranged from $0.23 to $1.20, with CRV testing the $0.82 resistance in the past two months but failing to sustain above the mid-range level at $0.72.
This failure indicated the potential for a significant retracement, possibly dropping to $0.38 or even as low as $0.23.
Source: CRV/USDT on TradingView
On the daily timeframe, Curve DAO (CRV) displays a bearish market structure.
In early June, the price tested the $0.70 level as a supply zone but was firmly rejected, leading to a 32% decline since then.
Indicators like the Chaikin Money Flow (CMF) and On-Balance Volume (OBV) reflect persistent selling pressure and a shift in control to sellers.
A bullish order block between $0.42 and $0.50 could act as a strong demand zone, with potential for a trend reversal.
Caution is advised as moving averages continue to signal downward momentum, emphasizing the need for confirmation before entering long positions.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or other advice.