Dissecting Curve DAO’s price action as CRV eyes another support test

ambcryptoPublished on 2025-12-19Last updated on 2025-12-19

Abstract

Curve DAO (CRV) experienced a 6.6% increase in Open Interest, indicating heightened speculative activity, despite its price declining by 2.63% in 24 hours and 9.9% over the past week. Analysis of higher timeframes reveals a bearish trend, with the weekly chart showing a break below key support levels at $0.49 and $0.37. The A/D indicator and MACD both reflect strong selling pressure and downward momentum. On the 6-hour chart, a bearish structure break and a short-selling setup were identified, with an overhead imbalance zone up to $0.38. A move above $0.38 would invalidate the bearish outlook. The next major support target is $0.243, with intermediate supports at $0.329 and $0.298. Overall, market structure and indicators favor further downside.

Curve DAO token saw a 6.6% increase in Open Interest in the past 24 hours, according to Coinalyze stats. Generally, increased speculative activity points toward strong momentum.

During this period, Curve DAO [CRV] prices have gone down 2.63%. The token has also shed 9.9% over the past week.

The wider market was bearish as well, with Bitcoin [BTC] facing rejection at the $90k level on Wednesday.

Does this mean it is time to enter short positions on CRV?

AMBCrypto investigated the higher timeframes to determine if a bullish reversal or bearish continuation is likely next.

Multi-timeframe analysis hints at this CRV move next

The weekly chart showed a bearish swing structure after falling below $0.49. Additionally, the March support at $0.37 has also failed to hold back the bears.

The A/D indicator was sliding lower over the past month, showing increased sell pressure. The MACD also underlined heavy downward momentum on the weekly timeframe.

Zooming in on the 6-hour timeframe, Curve DAO token showed a short-selling opportunity. The trend was bearish and there have been two quick-fire bearish structure breaks on this timeframe.

Additionally, the fair value gap, or imbalance, overhead up to $0.38 (white box) was tested before a bearish continuation.

Discussing the invalidation point for the bears

The structure, momentum, and volume indicators across the two timeframes showed that bears have the upper hand.

Traders going short would have their idea invalidated upon a CRV price bounce past the imbalance at $0.38.

Traders’ call to action – Here’s the next target

Using the weekly chart, the next bearish target can be determined.

It is the $0.243 support, where the Curve DAO token was trading from July to November 2024. On the way, the $0.329 and $0.298 would be short-term support levels that could halt a bearish move.


Final Thoughts

  • The increased speculative interest in CRV alongside a price drop suggested strong bearishness in the market.
  • The weekly and 6-hour chart gave a trade setup with a clear invalidation favoring the downside.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Related Questions

QWhat was the percentage change in Open Interest for Curve DAO token in the past 24 hours, and what does this generally indicate?

ACurve DAO token saw a 6.6% increase in Open Interest in the past 24 hours. Generally, increased speculative activity points toward strong momentum.

QWhat key support levels did the weekly chart show had been broken, confirming a bearish structure?

AThe weekly chart showed a bearish swing structure after falling below $0.49. Additionally, the March support at $0.37 also failed to hold back the bears.

QAccording to the 6-hour timeframe analysis, what was the identified trading opportunity and what overhead level was tested?

AThe 6-hour timeframe showed a short-selling opportunity. The overhead imbalance (or fair value gap) up to $0.38 was tested before a bearish continuation.

QWhat is the invalidation point for traders who enter a short position on CRV?

AThe invalidation point for a short position would be a CRV price bounce past the imbalance at $0.38.

QWhat is the next major bearish target for CRV identified using the weekly chart, and what are the potential short-term support levels on the way?

AThe next major bearish target is the $0.243 support level. On the way, the $0.329 and $0.298 levels would be short-term support levels that could halt a bearish move.

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