The current CRV/USDT recovery happens within an ascending wedge setup. The altcoin has hovered inside this pattern for about seven weeks, gaining 174% to the $1.56 highs. Nevertheless, bearish reversals from the setup’s trend-line offer another retracement opportunity, allowing buyers to scoop the altcoin at discounted prices.
Vital Points
- CRV saw its price plunging beneath the support at $1.43.
- The Relative Strength Index slopes indicate a bearish divergence on the daily chart.
- CRV’s intraday volume is $316.5 million, reflecting a 16.82% decline.
The falling wedge setup represents a bearish formation that indicates impending downside breaks. Therefore, as buyers appear exhausted carrying the market higher, the alt might finally breach the trend-lien support to support the imminent downfall.
CRV price reversed from the trend-line resistance on 29 July, triggering another bearish phase within the setup. The revert saw the altcoin breaching the nearest support floor at $1.435, presenting an additional chance of a possible correction.
CRV price has dropped 0.77% today, revealing sustainability beneath the breached support barrier. Therefore, sustained selling pressure would push prices 12% lower before hitting the upside trend line. Meanwhile, CRV price losing this support trend-line would mean an extended downside towards the $0.87 value area.
Equally, a massive bullish case might support an upward break from the setup’s resistance level. Such a move would accelerate the upside momentum for the token.
Technical Analysis
- Relative Strength Index
The daily Relative Strength Index maintaining lateral actions signals bullish strength weakness as the price action forms a new high. Therefore, bearish divergences from this indicator support the retracement narrative.
- Exponential Moving Average
The surging price has overturned the 20-50-day Exponential Moving Average into a dynamic foothold, helping buyers keep this recovery. Also, the price breached 100-day Exponential Moving Average (recently), meaning the alt can stall the anticipated drop.
Furthermore, CRV fans should watch broad market price tendencies as they will impact the altcoins trend. The crypto market has remained somewhat flat over the previous day, with the global crypto value hovering at 0.37% 24hr up at $1.10 trillion. Failure to push upside would show bulls weakness, translating to declines.
- Resistance zones – $1.43, $1.58
- Support zones – $1.08, $0.87
Editorial credit: FellowNeko / Shutterstock.com
