As early as the second trading week on the CRV market, buyers are trying to rectify the situation which happened in mid-May. The price fall by almost 70% in the period from 19 to 23 May was the deepest correction of the CRV price during the entire token growth trend.
However, during the CRV market fall, trading volumes were not so high. If we look at the daily timeframe, we see that the daily trading volumes in the period from 19 to 23 May are slightly lower than the volumes in the period of the price growth from 15 to 24 January:
In addition, the chart shows two more interesting facts. While the BTC price is in a mystical and intriguing triangle, CRV buyers have been able to absorb most of the CRVUSDT price fall wave. In addition, trading volumes began to increase near the critical range of $2.6-2.7.
It is in this range that buyers managed to significantly slow down the CRV price on 18 April and create a chance for a new growth wave. Furthermore, this range on 19 May made it clear to CRV investors that a sharp price fall is inevitable:
Continued growth of CRV is possible only after fixing above $2.6-2.7
In the 4-hour timeframe, we see that only after breaking this range at increased volumes, sellers were able to accelerate panic in the market and lower the price by 40% in hour.
At the moment, the CRV price is below this range, but sellers do not have the strength to launch a counterattack. The local trend line of buyers, which they carefully keep from 23 May, is as close as possible to the CRV price indicator.
Thus, the risks in the DeFi market on locked funds are as high as possible. It is better to make trading decisions after the CRV price leaves the local triangle.
Looking at the situation, we expect the range of $2.6-2.7 to break and the price to continue growing to $3.6. It was the unsuccessful attempts of buyers to fix above this mark 2 times that provoked such a powerful market reversal.
The critical point of the positive scenario is $1.93
Though, the loss of buyers’ black trend line will provoke the CRV price for another local fall wave with the first target of $1.93. The fall in such a low-volume situation would signal to buy CRV for the same target of $3.6.
The high probability of another local growth wave is confirmed by the CRVBTC price chart:
The CRVBTC price has been moving in broad consolidation since January 2021. The test of the upper consolidation limit is a minimal plan for buyers.