CRV has finally broken its 12-day sideways consolidation with a sharp move upward. A successful bullish retest of the range high could be the fuel needed for a continuation to key resistance levels.
After nearly two weeks of trading in a well-defined range, Curve DAO (CRV) has made a decisive move to the upside. The range-bound equilibrium structure had been compressing price action until a recent breakout flipped the previous range high into a potential support level.
This type of breakout-retest structure, if confirmed, typically signals a shift in market sentiment and opens the door for a new trend to form. With bullish momentum building and a technical confluence of support now forming at the breakout zone, traders should closely watch for validation through follow-through price action and sustained volume.
Key points
- CRV has broken out of a 12-day range and is currently retesting the range high as new support.
- The breakout level is in confluence with VWAP support, increasing its significance.
- Volume profile is above average, indicating potential strength behind the move.
The breakout above the range high marked a critical shift in CRV’s price structure. The previous resistance level is now being tested as support, a common retest setup in technical analysis.
A successful confirmation of this support will significantly increase the likelihood of a 20% move toward the next major daily support/resistance level. This next area will likely act as a key decision zone for whether CRV enters a larger bullish expansion or stalls.
What gives additional weight to the current price action is the strong confluence of VWAP support aligning with the breakout zone. This area is being respected by current candles and could serve as a launchpad if buyers continue to step in. When paired with market structure flips, the VWAP often signals where smart money is positioning itself, another reason this zone is crucial for continuation.
Equally important is the volume profile, which is currently showing readings above average for CRV. This is a positive sign and helps validate the breakout.
For the move to carry forward, volume needs to remain elevated to sustain upward momentum. If volume begins to fade and price fails to hold the retest zone, we may see a deeper retracement or a return to the previous range.
What to expect in the coming price action
As long as CRV holds the newly reclaimed range high and volume stays consistent, the odds favor a continuation move to the upside. A bullish reaction here will likely send price toward the daily SR resistance, marking a potential 20% rally.
However, if price fails to hold the current retest, CRV could slide back into the prior range, invalidating the breakout. Traders should monitor both price and volume closely for confirmation before entering any continuation setups.
