Curve DAO (CRV) Price Moves Toward $1 as Buying Interest Returns to DeFi Tokens

Key Takeaways

• CRV climbed to $0.72, making it the second-best performer among the top 100 cryptos, only behind AAVE’s 21% jump.
• The Price Daily Active Addresses (DAA) divergence hit +22.46%, a bullish sign suggesting growing on-chain activity.
• As long as indicators remain bullish, sustained bullish momentum may drive the price past $1 in the coming days.

Curve DAO Token (CRV) is one of the top performers over the past 24 hours, jumping 10% to trade at $0.72. The token, native to the Ethereum-based DEX Curve, hit $0.83 last Monday.

It reached its highest level since Jan. 25 before dropping again. But by the look of things, the altcoin could be in line to trade higher. Here is why.

Curve Overcomes Rejection

CRV’s price increase makes it the second-best-performing crypto among the top 100. It only trails fellow decentralized finance (DeFi) token AAVE, whose price increased by 21% within the same period.

This surge in price indicates rising buying interest around cryptos linked to the DeFi ecosystem. From a technical point of view, CCN observed that CRV’s price is trading within an ascending channel on the daily chart.

A closer look at the setup shows that the cryptocurrency formed this pattern after it broke out of a falling wedge in March. The Relative Strength Index (RSI) reading has risen above the neutral line on the same chart.

The RSI measures momentum using the size and speed of price changes. When the reading increases, momentum is bullish. However, a decline below the neutral 50.00 line indicates bearish momentum.

Should the RSI reading continue to rise, CRV’s price will likely rise past the $0.82 resistance. If validated, this could drive Curve’s market value toward $1.

More User Activity, Higher Value

Furthermore, we also checked Curve’s on-chain outlook, specifically the price Daily Active Addresses (DAA) divergence. As the name implies, the price DAA divergence checks whether activity on a project’s network is enough to drive the price higher or lower.

When the metric’s reading is positive, it indicates rising user engagement. If sustained, this could make it easier for the token’s price to increase, as more interaction could lead to higher demand.

On the other hand, a decline in the price of DAA divergence indicates a drop in user interaction with cryptocurrency, which is bearish. As of this writing, while CRV’s price jumped, the price-DAA divergence soared to 22.46%.

If sustained, then the cryptocurrency’s value could climb higher than $0.72 soon.

CRV Price Analysis: $1 Likely

Like the daily chart, the 4-hour timeframe showed that CRV’s price is also trading within an ascending channel. Amid this move, the Moving Average Convergence Divergence (MACD) has turned positive.

The positive MACD reading indicates bullish momentum around CRV’s price. If this reading continues to rise, the altcoin might also follow in a similar direction.

Regarding the potential targets, CCN noticed that the DeFi token will likely break past the 0.618 golden ratio. If validated, the cryptocurrency’s next move could be a rally toward $0.96 at the 0.382 Fibonacci level.

Should bulls remain in control, then CRV’s price might rise above the $1 mark. On the contrary, this forecast might not pass if bullish momentum fades. In that case, CRV might drop to $0.56.