According to technical and on-chain indicators, the Curve DAO token is flashing bullish signals. In fact, various analysts agree that the CRV is poised to explode higher and return to the psychological $4 level.

Technical indicators show an increase of 50%

CRV is forming a falling wedge, suggesting that a breakout could result in upward movement. Theoretical projections appear to be pointing to a 50% increase in CRV and marking the $4 level.

CRV price chart | Source: TradingView

The Market Value to Realized Value (MVRV) pattern is a key technical indicator used to measure the average profit/loss of investors who have purchased an asset over a period of time.

In this case, the indicator shows the average profit/loss of investors who bought CRV in the last month and year.

Readers should note that any reading below 10% suggests that short-term holders are losing money and that long-term holders often tend to accumulate. Therefore, values ​​below -10% are often referred to as “zones of opportunity”.

The 30-day and 365-day MVRV patterns are hovering at -12.7% and -13.52%, suggesting that long-term investors are clustering there. Therefore, this indicator supports the above bullish thesis.

30-day and 365-day MVRV models from CRV | Source: Santiment

Further support for the bullish narrative surrounding the Curve DAO token is the steady decline in the supply of CRVs on exchanges from 110 million to 100 million.

The 10 million CRV tokens flowing out of exchanges suggest that investors are optimistic about this altcoin’s performance in the near term.

Delivery of CRV to Exchanges | Source: Santiment

In addition, the on-chain transaction volume of the Curve DAO token is also steadily increasing. The index rose to 350.42 million CRV, well above the 200-day moving average of 304 million.

The 50-day moving average is climbing higher and approaching the 200-day moving average, suggesting a bullish crossover.

CRV On-Chain Transaction Volume | Source: Santiment

While all signals point to a bullish outlook for CRV, investors also need to consider the magnitude that could cause the token price to crash.

If bitcoin price falls, all altcoins, including CRV, will follow. In this case, if the CRV closes below the $2.14 zone daily, it will make a lower low and invalidate the current bullish thesis.

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