A $4 horizontal barrier area was reclaimed by the Curve DAO token (CRV). It is currently at 25% of its all-time high.
What is Curve?
The Curve is a decentralized stablecoin exchange with an automated market maker (AMM) for managing liquidity. Curve, launched in January 2020 and has witnessed tremendous growth in the second half of 2020, has become synonymous with the decentralized finance (DeFi) movement.
In August, Curve created a decentralized autonomous organization (DAO) with CRV serving as its internal coin. The DAO connects several smart contracts for users’ deposited liquidity using Aragon, an Ethereum-based development tool. However, issues such as governance differ from Aragon’s in terms of importance and other factors.
Michael Egorov, a Russian scientist with prior experience in cryptocurrency-related businesses, is the company’s creator and CEO.
The general Curve command is part of the CRV allocation mechanism and accepts tokens over a two-year vesting period as part of the first launch plan. Curve has received a lot of attention while staying true to AMM’s goal for stablecoin trading.
Given the CRV token’s use for governance and the fact that it is allocated to users based on liquidity commitment and length of ownership, the DAO and CRV token’s launch generated even more profit.
Curve’s durability has been secured by the boom in DeFi trading, with AMMs turning over massive sums of liquidity and related user gains. As a result, Curve caters to everyone participating in DeFi activities like yield farming and liquidity mining, as well as those trying to maximize returns without risk by holding stablecoins that are ostensibly non-volatile.
The platform generates revenue by charging a small fee to liquidity providers.
Curve’s Growth
In December, the CRV broke out of a declining resistance line that had been in place since April. On November 25, the stock reached a high of $6.4.
The token dropped following that, but on December 4, it confirmed this resistance line as support (green icon) and bounced. It was able to recapture the $4 horizontal area after that. CRV’s technical indicators are likewise bullish. The MACD, which consists of a short and long-term moving average (MA), is positive and trending upwards.
This indicates that the short-term MA moves quicker than the long-term MA, indicating that bullish tendencies are developing. Likewise, the RSI has surpassed 50 (Green circle). Another evidence of a bullish trend is this. The all-time high of $6.40 is the nearest resistance. If you can get above it, the next barrier is around $8.60, which the 1.61 external Fib retracement resistance level generated when looking at the most recent dip.
A cryptocurrency trader, @TradingTank, posted a CRV chart, predicting that the price may rise to $8. The 1.61 external Fib retracement resistance level has produced a resistance area that corresponds to this.
On the six-hour chart, CRV has broken out of a short-term ascending parallel channel. The 0.618 Fib retracement resistance level is currently creating resistance at $5.20. If it moves over this level, there is no further resistance until the all-time high price. Both the MACD and the RSI are climbing, similar to the daily timeframe, indicating that the upward trend will continue.
Prediction
Similarly, the CRV/BTC chart is optimistic. The token has broken through the 8,350 Satoshi resistance level it has held since the beginning of the year. If the token continues to surge, the closest resistance area marked by an external Fib retracement of 1.61 when evaluating the last part of the decline is 12,350 Satoshi.
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