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Curve DAO Token Price Outlook as CRV Hits a Key Resistance

Curve DAO Token Price Outlook as CRV Hits a Key Resistance

Last updated 11th Aug 2022
Disclosure
  • Curve DAO Token has made a spectacular comeback recently.
  • It has jumped to the highest point in more than a month.
  • Appetite for blue-chip DeFi tokens has jumped recently.

The Curve DAO Token price rose to the highest point in a month as investors shifted back to decentralized finance (DeFi) platforms. The CRV token is trading at $1.1590, which is the highest it has been since June 11th. It has bounced back by over 113% from its lowest point this month.

DeFi blue-chips correlation

Curve DAO token is the native cryptocurrency for Curve Finance, which is the third-biggest DeFi platform in the world. Only Maker and Aave are bigger. According to DeFi Llama, Curve has a total value locked (TVL) of more than $5.25 billion.

Curve Finance is a decentralized exchange that uses a technology known as automated market maker (AMM). In its platform, users can easily transact and exchange their stablecoins like Dai, USD Coin, True USD, and Binance Coin.

In addition, the platform runs Curve Pools, a platform that lets people earn interest by simply holding stablecoins and wrapped cryptocurrencies. These liquidity pools play an important part to facilitate the AMM function.

Curve DAO Token is the native cryptocurrency for the network. It is mostly used for the platform’s governance, which means that users can vote on key issues easily. It is similar to Uniswap’s UNI and Maker’s MKR.

See how you can buy Curve DAO.

The CRV token has diverged from the performance of other major coins like Bitcoin and Ethereum. At the same time, it has had a strong correlation with other major DeFi tokens. In the past few weeks, most tokens like Compound, Aave, and Uniswap have all risen by more than 100%.

This recovery has coincided with the collapse of popular centralized companies like Vauld, Voyager Digital, and Celsius. Investors seem to believe that large platforms like Curve will survive and thrive after the current crypto crash.

Curve DAO Token price prediction

The four-hour chart shown above reveals that the CRV token has been in a strong bullish trend in the past few weeks. The coin has managed to move above the important resistance point at $1.072, which was the highest point on June 8th.

It has also moved above the first resistance of the standard pivot point. Most importantly, it has risen above the 25-day and 50-day moving averages and is now approaching the upper side of the ascending channel.

Therefore, the coin’s bullish trend will only be confirmed if it manages to move above the ascending channel. If this happens, the next key resistance to watch will be R2 of the pivot point at $1.2330. Another possibility is where the coins pulls back now that it has hit an important resistance.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.