Is now the time to buy Curve Dao? What the MVRV ratio tells you

CRV has surged by 7.33% over the past 24 hours.
Curve Dao defies markets odds amidst increased accumulation.

As a seasoned analyst with over a decade of experience navigating the cryptocurrency markets, I’ve seen my fair share of bearish trends and unexpected surges. The recent performance of Curve Dao (CRV) has piqued my interest, particularly its resilience in the face of broader market downturns.

Although Bitcoin (BTC) and various alternative cryptocurrencies have faced declines, Curve DAO (CRV) carves out a unique trajectory for itself.

After hitting a low of $0.687, Curve Dao has gained on its price charts for three consecutive days.

Over the last few days, I’ve observed that the altcoin has surged to reach a peak of $0.93. As I write this, Curve Dao is being traded at approximately $0.836, representing a 7.33% growth in the past 24 hours. Notably, before these upward movements, CRV had been on a downward slope, losing 22.94% over the course of a week on the weekly charts.

As it appears that a turnaround might be unavoidable, one may wonder if CRV will persist in bucking the downward trend prevalent in the cryptocurrency market and maintain its upward trajectory instead.

What CRV charts indicate

Based on AMBCrypto’s examination, the Curve Dao project is gaining traction with a rising trend, fueled by growing investments from both individual traders and large investors (whales).

Initially, as an analyst, I’ve noticed a significant rise in the quantity of assets held by large investors, often referred to as ‘whales’. The supply they control has grown from approximately 1.44 billion units to around 1.48 billion units.

Therefore, during the last few weeks, large investors (whales) have purchased around 400 million tokens. When these big players start buying more, it indicates their trust in the market and suggests that token prices may rise in the upcoming period.

Furthermore, it’s worth noting that Curve’s Spot netflow has been persistently negative for the past week, suggesting that investors are actively purchasing CRV. This negative spot netflow typically means that the majority of traders are transferring their assets from exchanges to personal wallets or cold storage.

This situation frequently indicates an increase (accumulation) and a prolonged optimistic perspective among investors, known as a “bullish outlook.” When traders remove their assets from exchanges, they decrease the readily available supply, which can potentially drive up prices in the short term.

As an analyst, I’ve noticed a significant uptrend in my analysis of CRV. This bullish sentiment is reinforced by the bullish cross-over it has shown on its Stochastic RSI. Essentially, this crossover suggests that recent prices are approaching highs, indicating a surge in bullish energy.

This further signals a potential reversal from the downtrend to the upside.

In simpler terms, the MVRV score ratio for CRV indicates that the asset is currently underpriced. This value, which stands at -3.07, suggests a temporary pessimistic market trend. Despite this bearish sentiment, the undervaluation presents an opportunity for investors to buy at a lower price, often referred to as “buying the dip”.

Will the uptrend continue?

As a researcher, I’m observing an interesting development with Curve DAO (CRV). Contrary to the overall bearish market sentiment, CRV appears to be thriving due to increased accumulation. This is happening as investors, ranging from retail traders to whales, are taking advantage of the current dip by entering the market. The optimism shown by these participants suggests a potential trend reversal, and if this continues, we might witness an extended uptrend for CRV.

Under favorable circumstances, CRV might witness further increases in its graph, potentially surpassing the $1.1 resistance barrier. Conversely, if the selling pressure exceeds the buying pressure, there’s a possibility that CRV could experience a drop towards $0.69.

2024-12-24 00:07

What CRV charts indicate

Will the uptrend continue?

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