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Curve DAO surges over 16% as DeFi demand returns – Can CRV reach THIS?
Curve DAO [$CRV] is up more than 16% in the past 24 hours, turning its weekly change positive, around 9%. This comes as demand for the broader DeFi sector surges to provide liquidity for swaps.
Moreover, there was an increase in buying activity as daily trading volume increased by 174%, to about $122 million. Will $CRV hold on to the current bullish market structure?
Is $CRV’s market structure shift confirmed?
The current market structure confirms a trend shift with $CRV sitting above the most recent higher high (HH). The HH is trading above a bottoming sideways market that bounced between $0.18 and $0.2877.
The upper resistance of the range at $0.2877 is reinforced as a key zone, as $CRV bounced from the 20-day MA. The altcoin was trading above both the 20-day and 50-day MAs.
However, $CRV needs to maintain this structure if bulls are to surpass this year’s peak of $0.44. Resistances at $0.3851 and $0.3976 from the MA Crosses may be short-term hurdles to this rally.
But the trend remains healthy, with corrections for each leg-up ending at the 50% Fibonacci Retracement level. $CRV is trading above $0.36, 25% away from a new year-to-date (YTD) peak.
Still, traders should be wary of a correction if the $CRV bulls do not hold the price above $0.345.
The Bull Bear Power (BBP) confirmed the buying activity, with the sizes of the bars returning to pre-breakout levels. This indicated the token’s demand was present and exploding alongside that of Uniswap [UNI], which had double-digit gains.
But what showed $CRV’s demand?
How is Curve Finance’s network doing?
Looking at data from DeFiLlama, Curve Finance’s demand was quite evident, especially in the past two days.
The protocol provided deep stablecoin liquidity, with the market cap of crvUSD at over $283 million. This efficient liquidity on the protocol enables swaps against other tokens, as capital rotation to altcoins gradually builds.
Additionally, Active Addresses and Transactions returned aggressively after a long period of inactivity. Addresses have averaged over 6,000, while transactions were about 30K for the past two consecutive days.
Even so, the Total Value Locked (TVL) reinforced $CRV’s demand. The TVL increased by more than $300 million this quarter, from $1.43 billion in July to $1.70 billion.
Altogether, this network data confirmed the demand across the whole of the DeFi sector.
Final Summary
- $CRV surged by over 16% as DeFi tokens rallied due to growing demand for stablecoin liquidity to enable swaps.
- Curve Finance’s active addresses, transactions, and TVL confirmed the token’s demand.
Source: cryptonews.net