Key technical points:
The long-term trend of CRV's downtrend price has reversed to $0.55 to contest the resistance from the 20-day EMA. The bearish trend has led to an 80% drop in the market price of CRV from $2.6 to the lowest of $0.54 in two months. However, buyers try to get back into the trend and test this 20-day EMA.
Source- Tradingview
The downward trend in the CRV price action creates a resistance trendline on the daily technical chart. However, the latest bullish movement starting at the $0.70 mark is against the 20-day EMA and the resistance level at $0.85. Therefore, a bullish breakout of the $0.85 mark may trigger an actual recovery rally.
The active opposition from the 20-day EMA is a significantly bearish factor, keeping the growing bullish trend contained for most of 2022. Thus, traders may see the EMA breakout triggers a dramatic price increase. The DI lines display a growing upward trend as the lines have a shrinking spread of bearishness to regain the bullish alignment. Therefore, the DMI indicator could soon signal a trend reversal, thus increasing the probability of a breakout.
In the current market, despite a confluence of bearish forces, CRV Prices could soar until they reach the psychological threshold of $1. After that, the breakout rally will be able to test the 50-day EMA close to $1, with an increased probability of a long-term uptrend, reaching $1.40 upon breakout.
In contrast, if the buyers fail to take down the pressure to sell imposed by the 20-day EMA, A drop to $0.54 is unavoidable.
Resistance Levels: $0.85 and $1
Support Levels: $0.64 and $0.54