Curve DAO [CRV] Weekly Roundup: The Past, the Present, and the Future

Curve DAO [CRV] was up 43% over the past week amid high trading volumes driven by surging buying activity.

Curve DAO (CRV) token price has seen a remarkable 43% increase over the past week, fueled by high trading volumes and a surge in buying activity.

CRV price up 43% in a week

After hitting an all-time low of $0.18 last week, CRV price has enjoyed a steady climb. At the time of writing, the token is trading at $0.28.

Despite the significant recovery, CRV faces further challenges as the bearish sentiment across the broader market continues to impact the token’s price.

CRV funding rates drop sharply

According to data from Coinglass, funding rates have dropped sharply and moved into the negative zone. This indicates that traders are abandoning long positions and favoring short positions.

The shifting trader sentiment suggests that CRV may have peaked and could be due for a correction or consolidation.

CRV funding rates. Source: Coinglass

The sharp drop in funding rates also signals that CRV is cooling off after being overheated. The long/short ratio being close to 1 shows that the market is favoring neither longs nor shorts, resulting in reduced volatility.

CRV open interest, long/short ratio. Source: Coinglass

However, caution is still advised as the open interest has increased from $67 million to $100 million, per Coinglass. While this is usually considered bullish during an uptrend, the same might not apply to CRV due to the negative funding rates.

The high open interest amid negative funding rates suggests an increase in short positions, which signals a growing bearish sentiment.

CRV technical analysis: How high can it go?

CRV trading volumes have jumped by 175% in the last 24 hours, according to data from CoinMarketCap.

Buyers are likely behind the high volumes as the Relative Strength Index (RSI) on the four-hour chart stands at 72, indicating that CRV is slightly overbought.

However, the RSI line is tipping north, suggesting that buyers are yet to leave the market, which could create room for more gains.

The price has also created an ascending triangle showing a bullish continuation if CRV hits and bounces off the breakout price at $0.285. If bulls are strong enough, CRV could hit the next target at the 1.618 Fib Level ($0.36).

CRV/USD 4-hour chart. Source: Credible Crypto on X

Analyst Credible Crypto on X believes that there is room for further gains for the token, with the price potentially increasing two-fold.

“CRV hit our target and bounced perfectly off the breakout price at $0.285. If weak hands that bought the recent bottom sell, this will trigger a drop to the 0.236 Fib level ($0.209). However, if bulls are strong enough, CRV could hit the next target at the 1.618 Fib Level ($0.36).”

Conversely, the bullish thesis could fail if weak hands that bought the recent bottom sell. This will trigger a drop to the 0.236 Fib level ($0.209).