In this analysis, I will examine the CRV coin, which belongs to the Curve project, a DEX platform in the DeFi space. The analysis is conducted on both daily and 4-hour timeframes.
📅 Daily Timeframe: Beginning of Correction In this timeframe, after negative news for CRV, the price reached the support level at $0.2309, forming its main bottom there and starting its upward movement after accumulating.
📊 With the influx of buying volume, resistances at $0.3425 and $0.4070 were easily broken, and the price reached the resistance at $1.2630 with high momentum. The buying volume peaked and, with a Blowoff candle, the price correction began.
✨ The RSI exiting the Overbuy zone triggered the start of the price correction down to $0.382. Currently, the bottom of the correction is forming at $0.7890, and breaking this area could reach the $0.5 and $0.618 Fibonacci levels, which I have marked as limited areas for you. If these areas break, the next supports will be at $0.4070 and $0.3425.
🔍 If the price wants to continue in the same cycle with the next upward wave, it should not lose the range between $0.5 to $0.618 Fibonacci. Breaking this range would reset the market momentum, and the chart would need to create a new structure.
📈 For going long, the best trigger is breaking $1.2630 targeting $1.9116. If this area breaks, the volume and RSI should converge with the price. A divergence in volume greatly increases the likelihood of a fake break. For riskier triggers, it's better to look into the 4-hour timeframe.
⏳ 4-Hour Timeframe: New Price Structure in the Correction Phase
In the 4-hour timeframe, we can see the last upward leg in more detail and apply a new Fibonacci Retracement.
🧩 Currently, the price has corrected to the $0.5 Fibonacci zone, which overlaps with $0.7890, forming the primary bottom of the correction.
🔼 For an early and risky long position, breaking the resistance at $1.0451 is suitable. However, as mentioned in the daily timeframe analysis, the main resistance and trigger for going long is $1.2630.
🔽 For a short position, breaking the $0.382 Fibonacci, which overlaps with $0.9069, is suitable, but be cautious as you are shorting in a correction of an upward trend. Engage minimal risk so that if the upward trend continues, you do not incur significant losses.
🔑 The market volume has been decreasing since the peak at $1.2630 and is now at its lowest. The RSI is also ranging between 39.82 to 59.27, with a break of either area potentially introducing new momentum into the market.
📉 If further correction occurs, the next supports are the $0.618 Fibonacci at $0.69, and the areas at $0.5553 and $0.4661.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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