The DAO Token (CRV) curve rose 17% on January 3 and hit a new all-time high the next day. The outlook remains bullish.
CRV has been rising since December 4th when it validated the previous descending resistance line as support (green icon). Soon after, it recovered the horizontal area of $ 4.05 and has been rising steadily since.
Recovery was crucial since the zone had previously acted as the all-time high resistance. If a short-term decline were to occur, the area should serve as support.
On January 4, the token hit a new all-time high of $ 6.8.
Cryptocurrency trader @Crediblecrypto tweeted a CRV chart, indicating that the token will soon be in price discovery. As noted above, the token has reached a new all-time high and is now in the price discovery phase.
The daily chart also provides a bullish outlook. The CRV broke out of a shorter-term descending resistance line and validated it as support on December 3rd. On the same day, it bounced back and increased by 17%. The rebound also served to validate the horizontal area of $ 5.95 as support.
Technical indicators support the continuation of the bullish movement.
The MACD, which is created by a short and long term moving average (MA), is positive and increasing. This means that short-term MA is faster than long-term and is a vital part of uptrends. The last time this happened (green circle) was in October 2021 and preceded the upward movement to all-time high on November 25.
Likewise, the RSI is rising and is above 50. The RSI is an indicator of momentum and values above 50 are considered bullish.
The closest resistance zone is at $ 8.60, created by the external 1.61 Fib retracement resistance level.
CRV wave number
The number of waves suggests that the CRV is in the third wave of a bullish momentum. The number of sub-waves is shown in black, indicating that CRV is in the fifth and final sub-wave. The entire movement from October 2020 to April 2021 (highlighted) was likely part of the first wave.
The most likely target for the top of the move is $ 8.10. It is found by the 1.61 length of wave 1 (white) and the 1: 1 length of sub-waves 1-3 (black).
Subsequently, a correction would be expected.
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