Curve DAO Price Forecast: CRV Coils Below $0.433 as Whale Accumulation Fuels Breakout Hopes

Curve DAO (CRV) price is struggling to close above the key resistance at $0.433 on Thursday after a bullish breakout last week. On-chain indicators point to improving sentiment, with whale accumulation increasing alongside rising daily active addresses. If buyers can maintain momentum and confirm a breakout, CRV could extend its recovery toward the $0.548 resistance area.

Santiment's Supply Distribution data supports a bullish outlook for Curve DAO, as certain whales are buying CRV at recent price dips. The metric indicates that whales holding between 10 million and 100 million CRV tokens have accumulated a total of 33 million CRV tokens from early January to Thursday. During the same period, wallets holding between 100,000 and 1 million ADA tokens and 1 million and 10 million CRV tokens have shed 29 million tokens. This shows that the second cohort of whales could have fallen prey to the capitulation event, while the first set of wallets seized the opportunity and accumulated CRV at a discount.

Santiment's Daily Active Addresses index also paints a bullish picture for CRV. A rise in the metric signals increased blockchain usage, while a decline in addresses indicates lower demand for the network. In CRV's case, Daily Active Addresses rose from 945 on December 26 to 1388 on Thursday, the highest level since October 14. This indicates that demand for Curve DAO's blockchain usage is increasing, which bodes well for CRV's price.

Why Did This Happen?

The accumulation by large whale investors indicates a potential shift in sentiment among major holders of CRV. As whales buy at dips, it suggests they view the current price as a discount and are preparing for a potential price increase. This activity can influence market psychology, as retail investors may take these moves as a sign of strength and follow suit.

The increase in daily active addresses further supports this bullish narrative. A higher number of active addresses suggests increased adoption or usage of the Curve DAO network, which is often a precursor to price appreciation in the cryptocurrency market. This is because greater network usage typically translates into higher demand for the underlying token.

What Are Analysts Watching Next?

Curve DAO price broke above the descending trendline on Friday and rose nearly 7% in the next three days. However, CRV failed to close above the weekly resistance at $0.433 and declined slightly towards the 50-day EMA at $0.413. As of Thursday, CRV is attempting to break above this weekly resistance level.

If CRV closes above the weekly level at $0.433 on a daily basis, it could extend the rally toward the November 10 high of $0.548, which coincides with the 200-day EMA. The Relative Strength Index (RSI) on the daily chart reads 59, above the neutral level of 50, indicating bullish momentum is gaining traction. In addition, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover and rising green histogram bars above the neutral level, further supporting the bullish outlook.

However, if CRV closes below the 50-day EMA at $0.413 on a daily basis, it could extend the decline toward the January 1 low of $0.357. This scenario would suggest that the current bullish momentum has stalled and that sellers are regaining control in the market.

What Could Affect the Price?

The accumulation activity by whales and the rise in daily active addresses are both positive signals for CRV's price. However, these factors alone may not be enough to ensure a sustained breakout. Market conditions, broader crypto trends, and macroeconomic factors such as interest rates and regulatory developments could also impact the price action. Investors should monitor these variables closely, as they can influence investor sentiment and capital flows into or out of the asset.

The technical indicators currently suggest a balanced outlook. The RSI is above 50, and the MACD is showing a bullish crossover. These suggest that CRV could be building momentum. However, if these indicators fail to confirm a breakout, it could signal that the current rally is not sustainable. A move back below the 50-day EMA would be a key bearish signal to watch.