Curve DAO (CRV) price approaches $0.4: In the trend of Depth fall, what key signals should investors follow?

Gate news, despite Bitcoin (BTC) showing significant signs of recovery recently, the key project in the Decentralized Finance (DeFi) sector, Curve DAO Token (CRV), has failed to keep up with this rebound and continues to be trapped in a downward trend. In the past month, the selling pressure on CRV has shown no signs of easing, with its price having fallen below the low set on June 23. If the current trend continues, CRV is likely to re-test the important support level of $0.40 to $0.42 within this month. In the face of ongoing weakness, what signals should investors closely follow to gauge the future direction of CRV?

1. The Long-term Downtrend and Accumulation Phase of CRV

The strong rebound in November and December last year once ignited hopes for a sustained upward trend of CRV. However, from the weekly chart, CRV's price encountered strong resistance at the peak set in early 2023, failing to break through effectively. This development indicates that Curve DAO may be trapped in a long-term accumulation phase that has lasted for the past 30 months. Although the "altcoin season" in November 2024 provided significant momentum, it was still not enough to help CRV break through the sideways trend in the long run.

Currently, the price of CRV is fluctuating within the accumulation range of $0.23 to $1.20. It is worth noting that in the past two months, CRV has repeatedly failed to break through the resistance level of $0.82 and has not been able to maintain its average price range around $0.72. These consecutive failures have raised concerns about a deeper correction. If the selling pressure continues to increase, CRV may fall back to the key support level of $0.38, or even dip to the historical low of $0.23.

(Source: Trading View)

II. Analysis of Bearish Market Structure and Technical Indicators

On the daily time frame, Curve DAO (CRV) clearly shows a bearish price structure. At the beginning of June, CRV attempted to return to test the resistance zone around $0.70 (considered a key supply area), but was quickly rejected. Since then, the price has plummeted over 32%, clearly reflecting the loss of bullish momentum.

Technical indicators also confirm the bearish sentiment in the market:

Chaikin Money Flow (CMF): Since the rebound in November, the CMF indicator has remained below +0.05, indicating that the market is still primarily under selling pressure, with funds continuing to flow out.

On-Balance Volume (OBV): Although there was a slight increase in buying volume at the end of March and the beginning of April, the OBV indicator shows an overall downward trend, indicating that the bullish momentum is not sufficient to be sustained, and the buying power is inadequate to drive prices up.

3. Key support levels and potential reversal signals

Currently, the area between $0.42 and $0.50 may constitute a "bullish order block," which is a key demand area that bulls are expected to defend. Traders should closely monitor reversal signals here to identify potential buying opportunities early. If the price can gain effective support in this area and show signs of a rebound, it may indicate a relief of selling pressure in the short term.

However, as the moving averages still show negative signals and the overall market structure leans towards a bear market, establishing long positions without clear reversal confirmation may carry high risks. Investors should currently remain highly cautious and avoid blindly bottom-fishing.

Conclusion:

Curve DAO (CRV) is facing a severe test, with its price continuously trapped in a downward trend and approaching the key support level of $0.4. Although mainstream cryptocurrencies like Bitcoin have rebounded, the weak performance of CRV highlights its underlying structural issues and ongoing selling pressure. Investors should closely monitor the support situation in the $0.42 to $0.50 range and wait for clear reversal signals. In the absence of strong fundamental support and improvements in technical indicators, CRV's short-term outlook remains uncertain, and a cautious wait-and-see approach is the primary strategy at this time.