Curve DAO (CRV) has seen a notable surge in price and market sentiment, with the token testing a crucial support level that could signal the next big move for its future. As of February 20, 2025, CRV is exhibiting signs of bullish momentum, having gained 2.5% in price over the past 24 hours, along with a 0.80% increase in trading volume, according to data from Coingecko.
This surge comes after CRV broke out of a long-standing price consolidation pattern, known as a falling wedge, in late 2024. The breakout signified a shift in market sentiment, and the altcoin now finds itself retesting the support zone above $0.45. Analysts are closely watching this level, as it could determine whether CRV is on track to hit its next major target of $1.59.
The Fall, the Breakout, and the Retest
CRV’s price action has been closely tied to the formation of a falling wedge pattern on its weekly chart. Falling wedges are typically considered bullish reversal patterns, and after two years of consolidation within this structure, the token broke out in late 2024. This breakout marked a turning point, but the real test for CRV lies in its current retest of the $0.45 support level.
The weekly chart shows CRV testing this previous resistance level, now functioning as support. On shorter timeframes, bullish momentum is evident, with the price stabilizing around $0.48, slightly above the key support level. If the token can maintain its momentum above $0.45, there is potential for further gains.
Analyst Solberg Invest, who shared insights on social media platform X, believes that if CRV holds this bullish momentum, it could see its next major target at $1.59. This level is significant as it represents a previous resistance point, and breaking past it would mark a substantial price movement for the token.
Key Factors Driving CRV’s Momentum
Several factors are contributing to the growing bullish sentiment surrounding CRV. One important consideration is the behavior of large investors, often referred to as “whales.” Data from IntoTheBlock indicates that whales control a significant portion of the CRV supply, holding 85% of the token. Furthermore, a large portion of CRV holders—76%, to be exact—have held their tokens for over a year. This suggests that many investors have a long-term view on CRV, which could provide strong support if the market experiences short-term fluctuations.
Despite this, only 10% of CRV holders are currently in profit, signaling that many investors are underwater. This could create two scenarios: one in which a reversal of the current uptrend triggers capitulation from frustrated holders, or another in which the long-term conviction of these holders supports a rebound, potentially driving the price to new highs.
On-chain data from Glassnode also suggests a healthy level of investor activity, with the number of CRV wallet addresses increasing steadily over the past two years. This indicates a growing sense of bullishness among long-term investors, which further supports the view that the current price action may be the beginning of a more significant uptrend.
Additionally, the 7-day exchange netflow for CRV stands at -1.48 million, which is typically indicative of whale accumulation. This data points to decreased selling pressure in the market, which could help push CRV’s price higher if this trend continues.
Technical Indicators Suggest Potential Bullish Move
Technical analysis also paints a promising picture for CRV. The Relative Strength Index (RSI) for CRV stood at 37 on the 24-hour timeframe, signaling that the token was in oversold territory but showing signs of recovery. In the 4-hour chart, the RSI grew to 49, a positive sign that bullish momentum is building.
The surge in Open Interest—rising by 1.05%—further supports the notion of an impending bullish move. The Long/Short Ratio, which stood at 1.45, is also in favor of long positions, indicating that traders are more confident in CRV’s upward potential in the short term.
What’s Next for CRV?
The next few weeks could be pivotal for CRV, with several possible scenarios playing out. If the token can maintain its support above the $0.45 level and continue to build momentum, $1.59 may indeed be within reach. This would represent a major milestone for the project, further solidifying its position in the decentralized finance (DeFi) space.
The price movement of Bitcoin (BTC), with which CRV has a strong correlation of 0.94, could also play a significant role. If Bitcoin continues its uptrend, it may provide additional momentum for CRV, helping it break through key resistance levels.
However, if CRV fails to hold its support above $0.45, a drop toward the $0.30 range could occur. Such a decline might trigger panic selling among frustrated investors, potentially resulting in a deeper correction. Investors should closely monitor CRV’s movement and whale activity to assess the likelihood of these scenarios unfolding.
Final Thoughts
Curve DAO’s CRV token is at a critical juncture, with the price testing important support levels after a breakout from a falling wedge. The growing bullish momentum, combined with increasing whale accumulation and long-term investor conviction, points to a potential rally toward the $1.59 target.
However, the road ahead is not without risks. The token’s ability to hold above its key support level will be crucial in determining its short-term trajectory. As always, investors should stay vigilant and keep an eye on the broader market trends, including Bitcoin’s movements, for further insights into CRV’s potential price action.
Financial Market Newsflash
No financial news published today. Check back later.
