Curve DAO Token CRV Surges 28% in 24 Hours Driven by Short Squeeze

The Curve DAO Token (CRV) has experienced a significant surge, rising nearly 28% in the last 24 hours, pushing its price towards the $1.00 mark. This rally was driven by a substantial short squeeze that liquidated over $3.9 million in bearish derivative positions. The token is now testing the key $1.00 psychological resistance level, which could pave the way for a further breakout.

The price of CRV skyrocketed from a low of $0.7853 to just under the $1.00 mark, a level not seen in months. This rapid price increase has sparked renewed interest in the DeFi token, with trading volume spiking alongside the price. The surge appears to have been accelerated by a classic short squeeze, where a rising price forces traders who were betting against the asset to rapidly buy back their positions to cover their losses, further pushing the price up.

According to liquidation data, the past 24 hours saw $4.6 million in total leveraged positions wiped out, with nearly $3.9 million of those being short positions. This indicates that many traders were caught off guard by the rapid price surge. The data shows that the exchanges recorded the bulk of these liquidations, each handling nearly $2 million in closed short positions.

CRV has formed a strong uptrend, marked by a consistent pattern of higher highs and higher lows. The current price trend reflects growing market confidence, as the asset now hovers near the $1.00 barrier. This level carries significant psychological weight and technical importance. A breakout above $1.00, especially with sustained volume, could open the path toward the $1.05 to $1.10 range, the next key resistance zone based on prior trading history.

Support levels appear firmly established. The $0.90 region served as a consolidation base before the latest leg up and will likely act as near-term support. Below that, $0.85 has shown strength with repeated price interaction. If the market turns, $0.7853 marks the foundation of the recent rally and would be a critical support to monitor.

Several indicators reinforce the bullish narrative. The MACD shows a clear bullish crossover, with the MACD line climbing above the signal line. This indicates rising momentum and growing buying strength. The histogram remains in positive territory, suggesting the trend has not yet exhausted. The RSI is also trending upward, currently sitting at 57.29. Although not yet in overbought territory, it’s approaching the 70 level, suggesting increasing demand but not overextension. This leaves room for more upside if volume continues to support the rally.