Curve Dao (CRV) – Testing 161.8% Fibonacci extensionPosted on Thursday, May 12 2022 at 9:02 pm GMT+0000
Curve Dao (CRV) has been forced to reverse lower following a brief recovery earlier this month, pressed by the descending trendline drawn from the 8th of February top, and lately broken the crucial support level of 1.85 and kissed the 161.8% Fibonacci level of the mid-March up-leg.
Technical indicators are endorsing the bearish outlook as the 20 and 50-day simple moving average are negatively aligned while the RSI has dipped below the 30 oversold threshold and yet not showing any signs of abating. Additionally, the KST has slipped below its signal line in the negative territory.
If bears gather additional power and with certainty knock down the base around the Fibonacci golden number at 1.10, they will likely sink the price towards the 0.37-0.31 formed between the 24th of December 2020 low and the 227.2% Fibonacci level. On their way down, they might take a pause around the December 2020 top at 0.86.
Alternatively, if the 1.10 floor proves hard to crack, the price will revisit the 1.85-1.89 area of congested lows posted between late February and mid-March. Some distance higher, the falling 20 and 50-day simple moving averages will then likely delay a fresh test of the descending trendline. Next, the 25th of April high at 2.78 will step under the radar.
To summarize, Curve Dao is sustaining a broader bearish outlook below the 1.85-1.89 zone, and decisive close below 1.10 will motivate additional bearish developments. Only a sustainable step beyond the aforementioned resistance barrier could spark some optimism for a meaningful recovery.