$CRV CRV/USDT 4-Hour Analysis: Bearish Trap Formation Identified

Market Overview:

• Last Price: $0.6695 (-1.66%)

• 24H High: $0.7362 – Strong resistance zone observed.

• 24H Low: $0.5345 – Previous key support level.

Indicators:

1. Moving Averages:

• MA(5): $0.6338 – Price significantly above, indicating overextension.

• MA(50): $0.5159 – Strong support aligning with recent bullish rally.

2. RSI:

• RSI(6): 84.01 – Deeply overbought, increasing likelihood of correction.

• RSI(12): 78.79 – Confirming overbought conditions and potential bearish pullback.

3. MACD:

• Momentum shows weakening bullish trend; potential bearish divergence forming.

4. OBV:

• Volume spike indicates increased activity but may hint at exhaustion.

Support & Resistance:

• Immediate Resistance: $0.7360 – Psychological and technical barrier.

• Immediate Support: $0.6500 – A break below could lead to further correction.

• Key Support Zone: $0.5150 – Major level aligning with MA(50).

Trading Plan:

• Bearish Scenario (Swing Traders):

• Entry: Around $0.6900–$0.7100

• Target 1: $0.6500

• Target 2: $0.6000

• Stop-Loss: $0.7450

Summary:

The recent rally in CRV/USDT shows signs of a bearish trap as overbought indicators align with weakening momentum. A rejection near $0.7362 suggests profit-taking and potential downside risk. Traders should be cautious of false breakouts and focus on confirmation before entering positions.

Stay vigilant, and trade wisely!