Curve DAO Token Prints Double RSI Bullish Divergence
The Curve DAO token (CRV) appears to form a double RSI bullish divergence on the daily chart. The bullish divergence is a sign that the bearish momentum is fading off, clearing the way for possible reversal.
RSI Bullish Divergence
CRV's daily RSI is showing a strong bullish divergence against the short-term price and the long-term price action. In the short term, if we look at the technical picture, it's clear that while the price made lower lows, the RSI made a higher low which led to the formation of a bullish divergence.
The technical picture becomes more interesting if we compare the current swing low of $0.40 and the mid-June low with the equivalent lows in the RSI reading; we see that there is again a strong bullish divergence. CRV's price again made a lower low, but the RSI did not. Instead, it held above the mid-June RSI reading.
These two signals aligning together increase the probability of a reversal. The cryptocurrency may be in the process of putting a potential bottom in place, or at least a pause on the downtrend.
Looking forward: The first resistance comes around the $0.85 level, but only a daily break and close above the $1.00 significant psychological level can mark a more considerable shift in the market sentiment.
RSI Bullish Divergence
CRV's daily RSI is showing a strong bullish divergence against the short-term price and the long-term price action. In the short term, if we look at the technical picture, it's clear that while the price made lower lows, the RSI made a higher low which led to the formation of a bullish divergence.
The technical picture becomes more interesting if we compare the current swing low of $0.40 and the mid-June low with the equivalent lows in the RSI reading; we see that there is again a strong bullish divergence. CRV's price again made a lower low, but the RSI did not. Instead, it held above the mid-June RSI reading.
These two signals aligning together increase the probability of a reversal. The cryptocurrency may be in the process of putting a potential bottom in place, or at least a pause on the downtrend.
Looking forward: The first resistance comes around the $0.85 level, but only a daily break and close above the $1.00 significant psychological level can mark a more considerable shift in the market sentiment.