Curve DAO (CRV) faces a sell-off risk as bearish pressure increases

Token Curve DAO records a 6.6% increase in open contracts over the past 24 hours, according to data from Coinalyze — a signal often reflecting a significant rise in speculative activity and indicating that market momentum is gradually strengthening.

However, the price movement has gone in the opposite direction. During the same period, the price of Curve DAO (CRV) has decreased by 2.63%, extending the weakening trend with a decline of up to 9.9% in the last seven days.

The overall picture of the cryptocurrency market is also not very positive, as Bitcoin (BTC) was strongly rejected at the resistance zone of $90,000 on Wednesday, thereby exerting downward pressure that spread to altcoins.

In this context, the question arises: is this the right time to open short positions (Short) for CRV?

To answer, Coin Photon has conducted analysis on larger timeframes to assess the possibility of a bullish reversal or the continuation of the downward trend of CRV in the near future.

Multi-timeframe analysis reveals the next move for CRV

Weekly CRV/USDT chart | Source: TradingViewOn the weekly timeframe, the price structure clearly reflects a dominant downtrend, starting from the point when the price broke through the key support level of $0.49. Notably, the support zone formed in March around $0.37 was quickly overtaken by the bears, indicating a significant weakening of demand.

The A/D (Accumulation/Distribution) indicator has been continuously plunging throughout the month, reinforcing the signal that capital is flowing out of the market. Simultaneously, the weekly MACD continues to expand negatively, emphasizing that the bearish momentum remains very strong.

6-hour CRV/USDT chart | Source: TradingViewOn the lower timeframe, specifically the 6-hour chart, Curve DAO (CRV) continues to send favorable signals for a Short position strategy. The downtrend persists, with two consecutive breakdowns of the bearish structure, reflecting stable control by the bears.

Additionally, the price imbalance zone (fair value gap) above, extending up to the $0.38 (marked with a white box), was tested by the price before continuing to plunge, further supporting the short-term bearish scenario.

Invalidating the bearish scenario

From a technical analysis perspective, the market structure, price momentum, and volume indicators across both timeframes all agree that the bears are in control.

The preferred scenario for short positions (Short) will only be invalidated if CRV’s price suddenly reverses sharply, surges, and decisively breaks above the imbalance zone around $0.38, thereby weakening the current downward pressure.

Trader action – what’s the next target?

Based on the weekly timeframe chart analysis, the next likely support zone for CRV can be identified with high confidence.

Specifically, the $0.243 level is considered an important support zone, where Curve DAO tokens accumulated and traded from July to November 2024.

Before reaching this price zone, CRV is likely to react at short-term support levels at $0.329 and $0.298 — areas that could temporarily curb selling pressure and slow down the price correction.