- CRV breaks out of a descending channel, signaling a potential bullish reversal with strong support at $0.30.
- Analysts eye $0.35 as a key short-term resistance, with potential upside targets around $0.40 and beyond.
- Strong trading volume and bullish momentum suggest CRV could climb toward $0.50 if current levels hold.
In a rather positive development for Curve DAO Token (CRV) traders, the cryptocurrency has now parked itself outside a descending channel that has been in existence for several weeks. In a recent X post analyst ZAYK Charts suggested a bullish wave for CRV with the breakout from a descending channel it was stuck in for months.
The channel started forming in April, and although other participants started forming lower highs, CRV traders feared more declines. However, optimistic analysts’ view was that the channel’s lower bound would be a critical support level that could trigger an upside reversal.
Since this breakout, the price of token has been trading above a defined crucial point of $0.31, which was formerly situated in the channel as a resistance. This level could now provide support, hence if it is achieved it would unlock the next level of higher prices.
CRV Eyes Key Resistance Levels
The first major support which traders are eyeing is at $0.35. This level is a short-term target, and if CRV is to hurdle above this and sustain, it could be eyeing an upside target that could be around $0.40.
Source: Chart by ZAYK Crypto
This was indeed the case as CRV rose and went through the upper bound of the channel. The breakout was supported by a good trading volume which was also an indication of analysts being bullish. The price behaviour has since remained relatively flat but the trend is now and increasingly bullish one, with many traders training their sights at higher levels.
This breakout has been accompanied by the appearance of a strong green bullish candle on the daily chart. Going further, the analyst pointed out that the mentioned bullish wave could stretch up more than $0.500.
The general market sentiment also has a major impact as top-tier assets such as the Bitcoin could determine the direction of the market. For Curve DAO, holding above $0.30 is required to sustain the bulls’ stance with possible targeting far away from $0.50 if the breakout continues to hold.
Based on the ascending triangle breakdown, the analyst was bearish but the descending channel breakout confirms the forecast for CRV and potentially bullish in the coming period. Market players should pay attention to critical resistance levels in the wake of this fundamental shift in the market.
