Token (CRV) has bounced at an important support area and is trading inside a bullish pattern.
CRV has been falling since reaching an all-time high price of $6.80 on Jan 4. So far, the downward movement has led to a low of $1.89 on Feb 24. CRV bounced afterwards, creating a long lower wick in the process (green icon).
The bounce also served to validate the $2 horizontal area as support. The price has been trading above this level since Aug 2021.
Measuring from the all-time high, CRV has decreased by 68%.
Current CRV pattern
The daily chart shows that CRV has been trading inside a descending wedge since Jan 24. The descending wedge is considered a bullish pattern.
Therefore, a breakout from it would be the most likely scenario.
The possibility of a breakout is also supported by the MACD and RSI. Both indicators are moving upward and have generated bullish divergence (green lines). Such divergences often precede bullish trend reversals.
If a CRV breakout occurs, the closest resistance would be at $3.75. This is the 0.382 Fib retracement resistance level and a horizontal resistance area.
Cryptocurrency trader @TheTradingHubb tweeted a chart of CRV, stating that the correction could soon be complete.
The most likely wave count does suggest that CRV is in wave C of an A-B-C corrective structure. Wave C has seemingly evolved into an ending diagonal, as is visible by the wedge shape.
Currently, waves A:C have had a 1:1.27 ratio, which is relatively common in such structures.
As of right now, it is not yet certain if the final sub-wave (black) of this formation has been created, or another slightly lower low will follow.
In any case, it does seem like the corrective structure is coming to an end.