Date: Mon, March 31, 2025 | 07:24 PM GMT
The cryptocurrency market is currently under bearish pressure as Ethereum (ETH) has dropped by over 11% in the last seven days, partly due to escalating global trade tensions. With former U.S. President Donald Trump set to impose reciprocal tariffs on all countries on April 2, investor sentiment has taken a hit, leading to a decline in the broader altcoin market.
However, amidst this turbulence, Curve DAO Token (CRV) has defied the bearish trend, posting a 3% gain today after holding a key support level.
CRV Holds Key MA Support
CRV is consolidating within a classic bullish flag pattern. This formation took shape after the token was rejected at the $1.33 resistance level on December 7, leading to a sharp correction. The decline brought CRV down to a low of $0.35 on March 11, where strong buying interest emerged.
This buying momentum pushed its price to test the upper resistance of the flag pattern at the $0.60 level. However, the recent market downturn has caused CRV to retest a key support level at the 50-day moving average ($0.45). Encouragingly, the token has successfully defended this level and has since rebounded to $0.50. If this momentum continues, CRV will likely make another attempt to break above its flag formation.
Breakout Potential
A breakout from this formation, followed by a confirmation retest, could pave the way for a move toward the 100-day MA and the $0.8274 resistance zone, representing a potential 61% upside from current price levels.
The MACD indicator also shows early signs of bullish divergence, further supporting the possibility of a breakout in the coming weeks. Additionally, historical price action suggests that once CRV clears the flag pattern resistance, it could trigger a rapid price appreciation toward the next key resistance levels at $1.00 and beyond.
Final Thoughts
While CRV has shown resilience by holding its 50-day MA support, confirmation of a breakout is still needed for a stronger bullish case. Traders should closely monitor the token’s price action around the $0.60 resistance level. A decisive close above this range could signal the beginning of a sustained uptrend.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.