Curve DAO's CRV Token Surges 19% After Trump's DeFi Protection Order

Curve DAO [CRV] experienced a significant surge in the last 24 hours following a legislative order signed by the President of the United States, Donald Trump. This order aims to protect Decentralized Finance (DeFi) and related assets, sparking a positive reaction from the market.

The new law prevents the Internal Revenue Service (IRS) Digital Assets Sale and Exchanges Rule, also known as the DeFi Broker Rule, from being enacted. This rule would have required both custodial and non-custodial services to submit reports to the IRS at regular intervals. Representative Mike Carey of the House Ways and Means Committee criticized the rule, stating that it hindered American innovation, infringed on the privacy of everyday Americans, and would overwhelm the IRS with an excessive number of new filings during tax season.

Following the announcement, DeFi tokens, including CRV, reacted positively. CRV, the native token of Curve, led the surge with a 19% increase, pushing its monthly gains to 48%. This rally was driven by spot market traders who accumulated 1.15 million CRV, worth approximately $667,000, as indicated by the exchange netflows. This purchase is likely long-term, as traders moved the CRV into private wallets for holding.

The In/Out of the Money Around Price (IOMAP) indicator revealed minimal resistance ahead, suggesting more room for growth. At the time of writing, the IOMAP highlighted no strong resistance until $1.83, where roughly 899.95 million CRV sell orders may exist. If buying pressure persists, CRV could climb towards this resistance zone, potentially recording a price run-up to the $1.83-level.

However, CRV could witness a price cooldown before a sustained market rally. At the time of writing, it was trading into a key resistance level at $0.61 – a level which previously forced the price lower the last time the asset hit this level. This drop is unlikely to be significant, especially given the prevailing bullish sentiment. Three levels are expected to act as support to push the asset further – $0.549, $0.509, or $0.478, depending on market momentum.

In the derivatives market, selling pressure seemed to be building too. The OI-weighted funding rate flipped negative, indicating a hike in short activity. CRV’s latest rally reflected renewed confidence, especially on the back of regulatory clarity from the White House. While a brief dip may happen soon, strong accumulation and minimal resistance suggested bulls may still have some room to run.