- The price of Curve DAO is in positive territory on Thursday, having surged nearly 15% this week.
- Technical analysis indicates a potential double-digit increase if CRV manages to surpass its crucial resistance level at $0.55.
- On-chain data reinforces this optimistic outlook, as bullish positions for CRV are increasing and funding rates remain favorable.
The price of Curve DAO (CRV) is up 8% on Thursday, trading above $0.53 after an impressive rally of almost 15% this week. Current technical indicators suggest a possible double-digit gain if CRV can break through its important resistance at $0.55. Additionally, on-chain metrics point to a continued bullish trend as CRV’s bullish engagements rise and funding rates are in a positive range.
CRV could surge 23% upon breaking its declining trendline
On Wednesday, the price of Curve DAO faced rejection at the 200-day Exponential Moving Average (EMA) of $0.55, leading to a decline of 8.92%. This EMA level coincides with a descending trendline—formed by connecting various highs since early December—making it a critical resistance zone. A breakout here would favor bullish traders. As of Thursday, CRV is recovering and nearing this descending trendline.
If CRV can successfully breach this descending trendline and close above the $0.55 EMA, a rally of 23% could take it back to its daily resistance at $0.69. A solid close above this level could lead to an additional 20% increase towards its January 31 high of $0.83.
The Relative Strength Index (RSI) on the daily chart backs this bullish sentiment, currently reading 55 and trending upwards after bouncing off the neutral level of 50, indicating strengthening upward momentum.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator recently exhibited a bullish crossover, sending buy signals and suggesting a continuation of the upward trajectory.
CRV/USDT daily chart
Bullish on-chain metrics for CRV
Exploring CRV’s on-chain data aligns well with the positive technical signals. Current long-to-short ratio data indicates a figure of 1.05, illustrating bullish sentiment among traders, as more are positioning for a price increase.
CRV long-to-short ratio chart
Moreover, based on data regarding OI-Weighted Funding Rates, fewer traders are betting on a decline in CRV’s price compared to those expecting it to increase. This index, which weighs futures contract yields against their Open Interest (OI), typically shows that a positive rate (where longs are paying shorts) reflects bullish sentiment, while negative rates indicate bearishness.
In CRV’s scenario, this metric is at 0.0079%, demonstrating a positive rate and suggesting that long positions are paying short positions. Such conditions often point to bullish market pressure, indicating potential upward movement for CRV’s price.
CRV OI-Weighted Funding Rate chart.
On Tuesday, CRV announced a collaboration with Resupply, a decentralized stablecoin protocol that aims to enhance the liquidity and stability of lending markets. This partnership is set to unlock “capital efficiency” for crvUSD, Curve’s own stablecoin pegged to the US dollar. Enhanced capital efficiency will allow crvUSD to function more effectively, enabling users to deploy it as collateral, lend it, or earn higher returns with reduced locked value. This strategic move is likely to attract more users to Curve Finance, subsequently increasing demand for CRV.