The price of Curve DAO Token dropped 32% in just over two weeks.
The bearish structure and lack of demand make a drop to $0.42 feasible.
Curve DAO Token [CRV] recorded a strong downward trend in the cryptocurrency market last month, and the profit-taking phase has yet to stop.
Despite Bitcoin [BTC] recovering slightly since the beginning of the week, CRV has not been able to keep up with the performance of the leading coin.
CRV is trading below the low on June 23, indicating that the bears are still dominant. It is likely that the price will touch the $0.4–$0.42 range in June.
Curve Token did not hold the $0.70 level, showing a clear downtrend.
Source: CRV/USDT on TradingView
The price increases in November and December were impressive, but the weekly chart shows a rejection right at the peak at the start of 2023.
This suggests a 30-month accumulation cycle for Curve DAO. The Altseason in November failed to establish an upward trend on the weekly chart.
The accumulation phase, or sideways trend (in white), extends from $0.23 to $1.20. Over the past two months, CRV has reached resistance at $0.82 but failed to maintain above the midpoint of $0.72.
This failure reveals the potential for deep adjustments, which could retreat to $0.38 or as low as $0.23.
Downward pressure on the daily chart
Source: CRV/USDT on TradingView
On the daily chart, CRV has formed a distinct bearish market structure.
In early June, the price tested the supply zone at $0.70 but was strongly rejected. Since then, CRV has dropped 32%.
The Chaikin Money Flow (CMF) indicator has remained below +0.05 since the November surge, reflecting prolonged selling pressure.
On-Balance Volume (OBV) also shows that the sellers are dominant, following a slight bounce in demand at the end of March and the beginning of April.
Potential demand zone and risk warning
The strong buy zone between $0.42 and $0.50 (in turquoise) could trigger good demand.
Bulls are expected to defend this level. Traders need to closely monitor for reversal signs here.
However, the moving averages still lean towards a downward trend. Early buying could carry risks if the reversal is not confirmed.
Source: https://tintucbitcoin.com/curve-dao-crv-042-usd-co-the-den/
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