Curve DAO works as a decentralized exchange for stablecoins using the automated market maker liquidity. Since January 2020, this platform has made a strong position in the DeFi space and showed amazing growth in the second half of 2020.
In August, Curve initiated a DAO project with CRV as its in-house token. It is an Ethereum-based tool that can connect multiple smart contracts to deposit liquidity. However, this instrument has a standard risk of depositing funds in smart contracts and AMMs. On the other hand, it only supports stablecoin, where quick market movement is reduced.
The Curve DAU token is still a juvenile project; it has 866,065,861 CRV in circulation, representing 26.22% of the total supply. TODAY'S curve DAO Token (CRV) price has a $2,527,761,095 market cap, allowing it to hold the 65th position in coinmarketcap crypto ranking.
So, Is Curve DAO Token (CRV) a good investment?
Let’s see the Curve DAO Token (CRV) price prediction from Curve DAO Token review:
Curve DAO Token (CRV) Price Formed A Bullish Trend Line Break
In the CRV/USDT daily chart, the broader market trend is corrective, where the monthly candle for June came with a Hanging Man formation. This candlestick is backed by several bearish months, which could come as an alarming sign for bulls. As per the monthly candlestick pattern, a bullish break above the 0.8173 level is needed before anticipating a bullish trend.
On the daily price, the current price is bearish from the 0.7765 critical event level as bulls failed to breach this level with a daily candle close. However, the existing buying pressure from the 0.6409 level came with a bearish liquidity sweep, which could result in a bullish trend after a considerable correction.
The 100-day Simple Moving Average is above the current price, while the 20 EMA is working as an immediate support level, above the near-term demand zone.
The MACD Histogram turned bullish in the indicator window, and its momentum is strong. Moreover, there is no sign of divergence in the MACD line. Therefore, investors should wait for bullish rejection from the dynamic 20 EMA before going long in this pair. In that case, the primary bullish target would be towards the 1.1134 level.
On the other hand, a break below the 0.6409 might increase the loss towards the 0.5500 level in the coming days.
CRV/USDT Ichimoku Cloud Analysis
According to the Ichimoku cloud in the H4 chart, the CRV/USDT price shows another sentiment where the most recent trend changed from bearish to bullish.
The price moved above the Kumo Cloud with an impulsive bullish, with a multiple higher high formation. Senkou Span A is above Senkou Span B and aimed higher, which is a primary sign of the possible bullish trend continuation. However, there is a strong gap between the price and dynamic Kijun Sen, which is a sign of a bearish correction.
The above image shows how the RSI hovers at the 70.00 overbought level, indicating that the price faces extreme bullish pressure. Therefore, any rejection from the 70 levels would signal a bearish correction, but close attention to price action is needed before finding the bullish opportunity. The current price is above Tenkan Sen and Kijun Sen, indicating a pending bearish correction.
Based on the H4 Curve DAO Token Forecast, if the price shows bullish rejection from the Kijun Sen or static 0.6946 level, it may provide a strong long opportunity. On the other hand, a bearish break with an H4 close above the 0.6604 could eliminate the bearish possibility towards the 0.5595 level.
CRV/USDT Intraday Price Action Analysis
CRV/USDT bears became stronger in the intraday chart, taking the price above the dynamic 20 EMA and weekly VWAP level. Therefore, as the broader market context is bullish, investors should wait for the price to move above dynamic levels before going long.
The above image shows that the MACD Histogram is bearish and losing momentum. Therefore, a positive Histogram with an H4 rejection from the 0.7200 to 0.6694 area would be a potential buying opportunity in this pair.
Is Curve DAO Token (CRV) A Buy?
According to the Curve DAO Token (CRV) forecast, the border market context is bullish, so investors should focus on buying at a reliable price level. However, the current price shows bearish momentum, which needs an attension.
In that case, investors should closely monitor how the price trades at the near-term H4 support level. Any bullish opportunity from H4 Kijun Sen is potent to provide a decent outcome in the coming days.