🌎 CRV Eyes Bullish Reversal Amid Key Support Zone

Curve DAO Token (CRV) is showing promising signs of a potential trend reversal after finding support at a significant confluence zone. With trading volume starting to increase and the price structure forming a potential higher low on the daily chart, traders are closely monitoring whether bulls can solidify their position and drive the next upward move. This analysis breaks down key technical levels and signals that could indicate a continuation of the bullish trend.

Key Technical Factors to Watch

Confluence Zone Support

CRV’s price is currently holding above a critical zone that includes the value area low, the 0.618 Fibonacci retracement, and a local swing low. This confluence demonstrates strong buyer interest, as these levels are typically defended during periods of accumulation.

Higher Low Formation

A potential higher low setup is forming as the price grinds into the key swing low, followed by a reclaim and sustained hold above it. This pattern is often a precursor to a trend continuation, signaling strength in the market.

Volume and VWAP Alignment

Rising buy volume, coupled with the Volume Weighted Average Price (VWAP) aligning near this confluence zone, adds further conviction to the bullish outlook. A steady increase in volume would signal a stronger likelihood of a breakout.

Technical Analysis of CRV

The current chart structure of CRV is displaying characteristics commonly seen during the early stages of a bullish trend reversal. What makes this setup particularly noteworthy is the dense overlap of technical indicators within the confluence zone. This zone includes the value area low derived from volume profile analysis, the 0.618 Fibonacci retracement from the recent upward move, and a local swing low. Together, these levels provide a solid foundation for bullish defense.

Looking at the bigger picture, this critical zone is situated just above a weekly support/resistance flip, suggesting the market recognizes this level as significant. The ongoing consolidation above this area indicates that buyers are stepping in, though they have yet to make a decisive upward push. Historically, such grinding price action often precedes explosive moves, especially if there’s a brief liquidity grab below the swing low, followed by a swift reclaim.

What Traders Should Monitor

For confirmation of bullish momentum, traders should watch for the value area high within the same zone to act as support. This would signal that market participants are not only defending the base but are also comfortable accumulating on dips. Rising volume during this reclaim phase would further validate the bullish case.

The alignment of VWAP near the Fibonacci level adds additional strength to the setup. If buyers manage to push above the value area high with increasing volume, CRV could target significantly higher levels in the short term. The current structure suggests accumulation, and a breakout may be imminent if the higher low holds.

Potential Next Steps

If bulls successfully defend the current region and push CRV’s price above the value area high, the token may begin trending upward. Traders should remain focused on the higher low formation, as its confirmation could signal the start of a breakout. For now, the priority lies in monitoring key levels and waiting for volume to confirm the next move.