Curve DAO Token Surges 19% in November, Eyes $0.55 Resistance

Curve DAO token (CRV) has shown a strong performance in November, gaining just over 19% in a week. However, despite this recent surge, crv remains far from its 2021-2022 highs. The bulls are now targeting the $0.55 resistance level, which, if breached, could potentially lead to a 12% price increase.

Analyzing the weekly chart, it is evident that while CRV made significant gains in November, the long-term downtrend has not been entirely reversed. A bullish structure break on the weekly chart indicates strength, but it may be too late to sustain gains throughout the cycle. Bitcoin's weakness in December and subsequent fall below $92k in February have also impacted CRV, denting the sentiment behind the token.

Reduced selling pressure provides an opportunity for CRV to recover. The 1-day chart shows that the On-Balance Volume (OBV) has not fallen significantly compared to its December levels and has even made higher lows in the past three months. This slow upward push suggests a lack of selling volume during the deep retracement, indicating a potential quick recovery.

Despite the positive OBV sign, the bulls face challenges. The Relative Strength Index (RSI) has climbed above the neutral 50, signaling a bullish momentum shift. However, the $0.55 local resistance remains a hurdle. The daily market structure is bearish, and a breach of $0.55 would change this. Further resistance levels, as indicated by Fibonacci retracement levels, would need to be overcome. Bitcoin's trends in the coming weeks could significantly influence CRV's performance.

The 1-month liquidation heatmap reveals that the area from $0.50 to $0.55 is filled with liquidation levels, which could attract Curve prices higher in the coming days. A move to $0.55 is likely to be followed by a minor retracement. Shorter-period liquidation heatmaps would provide insights into the depth of such a dip. Based on current evidence, a move to $0.55 could be followed by a dip toward $0.47. If buying volume surges, a breakout beyond $0.55 becomes more likely, reducing the probability of a pullback to $0.47.