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The ongoing recovery in the CRV/USDT pair is rising under the influence of an ascending wedge pattern. For nearly seven weeks, the altcoin within this pattern has gained 174% as it reached a high of $1.56. However, a bearish reversal from the pattern’s trendline provides another pullback opportunity allowing potential buyers to accumulate this token at a discounted price.
Key points:
- The CRV price nosedive below the $1.43 support
- The RSI slopes show a bearish divergence in the daily time frame chart
- The intraday trading volume in the CRV token is $316.5 Million, indicating a 16.82% drop.
Source- Tradingview
In theory, the falling wedge pattern is a bearish reversal pattern that signals an imminent breakdown to the downside. Thus, as buyers get exhausted from carrying the market value higher, the altcoin may eventually breach the support trendline to trigger the upcoming downfall.
On July 29th, the CRV price reverted from the resistance trendline, initiating another bear cycle within this pattern. The reversal breached an immediate support level of $1.435, offering an extra edge for a possible retracement.
Today, the CRV price is down by 0.77%, showing sustainability below the poked support. Thus, sustained selling should lead the price to 12% down before it hits the ascending trendline.
Thus, if the CRV price pierce this support trendline as well, the coin sellers would extend the correction to the $0.87 mark.
Conversely, under a strong bullish scenario, an upside breakout from the pattern’s resistance trendline is possible, which may accelerate the bullish momentum.
Technical analysis
RSI indicator: while the price action is forming new higher, the daily-RSI slope walking a lateral path signals weakness in bullish momentum. Thus, a bearish divergence from this momentum indicator supports a correctional theory.
EMAs: the rising price has flipped the 20-and-50-day EMA into dynamic support, assisting buyers in maintaining this recovery. Moreover, the price has recently breached the 100-day EMA may stall the expected downfall.
- Resistance levels- $1.43, and $1.58
- Support levels- $1.08 and 0.87
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