The broader cryptocurrency market is experiencing significant downside volatility, with both Bitcoin (BTC) and Ethereum (ETH) seeing declines of over 5% in the last 24 hours. Despite this challenging environment, a slight 1% drop in Bitcoin dominance (BTC.D) has offered a glimmer of relief, enabling several altcoins to stabilize and decelerate their downward price action.
Among these altcoins, Curve DAO Token (CRV) is exhibiting a particularly noteworthy technical structure. After a sharp 16% weekly decline, CRV is now displaying patterns that historically precede bullish reversals, suggesting a potential shift in its price trajectory.
Double Bottom Pattern Developing for CRV
On the daily chart, CRV appears to be in the process of forming a classic double-bottom pattern. This pattern emerged following a substantial downtrend that commenced when the token failed to surpass the $0.5461 neckline resistance in early November. Subsequently, the price entered a pronounced corrective phase, depreciating by more than 25% and retesting the critical $0.4075 support zone. This $0.4075 level now represents the second bottom of the potential double-bottom formation.
The price chart illustrates multiple instances of interaction with this support zone, indicating strong buying interest and aggressive defense by market participants. The recent bounce to $0.4220 provides early indications of a potential momentum shift, as demand appears to be gaining traction over selling pressure.
As CRV rebounds from the identified support area and attempts to re-enter its previous consolidation range, the overall chart structure is increasingly resembling a textbook double-bottom formation. This particular pattern is widely recognized as a signal for early trend reversals.
Key Levels to Watch for CRV's Future Movement
The $0.4075 support region is paramount for CRV's immediate future. Maintaining price stability above this level is essential for the preservation of the developing bullish structure.
Should CRV sustain its rebound, the next significant hurdle will be the 30-day moving average, which is currently situated around the $0.4863 mark. This dynamic resistance level coincides with the neckline of the potential double-bottom pattern and could prove decisive in determining whether CRV initiates a more robust bullish recovery.
A decisive breakout above the 30-day moving average would serve as a confirmation of the double-bottom formation. Such a breakout could unlock a potential upside target of approximately $0.5461, signifying a considerable recovery from its current price levels.
Conversely, if CRV fails to hold the $0.39–$0.40 support area, the current bullish setup would be invalidated. This scenario would increase the likelihood of further downward pressure before any subsequent recovery attempts can materialize.
As CRV approaches its neckline zone, traders and analysts will be closely observing trading volume and momentum indicators to ascertain whether a confirmed reversal is indeed in progress.