CRV with massive potential!
What is Curve?
Curve is a decentralized exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity.
Launched in January 2020, Curve is now synonymous with the decentralized finance (DeFi) phenomenon, and has seen significant growth in the second half of 2020.
In August, Curve launched a decentralized autonomous organization (DAO), with CRV as its in-house token. The DAO uses Ethereum-based creation tool Aragon to connect multiple smart contracts used for users’ deposited liquidity. Issues such as governance, however, differ from Aragon in their weighting and other respects. – CMC
CRV Price Action
CRV is the DAO Token for the Curve platform. CRV had an initial range between $0.33 – $1.00. Price exploded in early January and CRV had a run to $3.66. The price was actually able to hold on for the May rally and CRV went on to make another new ATH on April 16th at $4.65.
Like so many others, that would be the top for CRV for quite some time. CRV went on to lose over 77% and head back down to the top of the initial range around $1.05.
192 days after the new ATH was made back in April, CRV pushed once again to new heights. This was in line with the rest of the market for the Halloween rally. CRV topped out this time at $6.399.
This recent move allows us to take another look at a potential leg and a full on reversal that could explode CRV near $20 a piece.
For starters, the Support…
Although CRV has absolutely destroyed this local support in recent days, it still shines as the best possible local Support Zone. We can add trends to the lows prior to this action but those haven’t been respected much at all either. The overall price action of CRV is unfortunate as it’s a total mess. This makes trading it in any traditional format almost useless.
The way to approach something like this is by accumulating the asset over time when it dips into buy levels. To do this you only buy a little bit at a time and only when it drops to your levels. This could mean you never enter the trade or it could mean that you never enter the trade with your full allotment.
If the Support Zone holds and we are to see a rise in interest for CRV then we are first looking to a very old price discovery level. That level sits around $12.25. This would be a 150% move from the Support Zone and it is a double confluent price discovery zone.
If CRV is to go all out with a massive bullish rally then we can see a push between $18.40 and $19.60. This area falls back on older price discovery targets.
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