Whale CRV makes a strong push for Accumulation: A signal for a bounce back?

Curve DAO (CRV) is extending its bounce back, maintaining trading above the 0.75 USD mark on Tuesday morning, after staying solid at the 200-day EMA in the previous session. Notably, strong accumulation activity from large wallets along with bullish divergence signals on the 4-hour frame indicate that market momentum is clearly improving, thereby reinforcing expectations for a sustainable recovery in the near future.

CRV whales buy in as bullish sentiment increases

Supply distribution data from Santiment continues to reinforce a positive outlook for Curve DAO, as the activity of large wallets ( whales ) shows an increasing trend in accumulation.

From Friday to Tuesday, the wallet group holding between 10 million and 100 million CRV (blue line) has accumulated an additional 13.3 million tokens. In contrast, wallets holding between 100,000 and 1 million CRV (red line) along with the group from 1 million to 10 million CRV have offloaded a total of 12.56 million tokens.

This development reflects the ability of the medium-sized whale group to have accepted to let go during the correction, while the largest group seizes the opportunity to accumulate CRV at a discounted price.

CRV supply distribution chart. Source: Santiment. At the same time, derivative data also shows optimistic signals. The long/short CRV ratio on Coinglass reached 1.01 on Tuesday, nearing the highest peak of the month, indicating that investors are betting more heavily on the bullish outlook for this asset.

Long/Short ratio of CRV | Source: Coinglass## Price forecast for Curve DAO: CRV signals a bounce back

On August 27, Curve DAO (CRV) was unable to break through the resistance zone of 0.81 USD and quickly adjusted by 8.6% as of Monday, retreating to test the 200-day EMA at 0.71 USD. However, by Tuesday morning, buying pressure returned, helping CRV bounce back and trade steadily above the 0.75 USD mark.

If the 200-day EMA at 0.71 USD continues to hold as support, the bounce back of CRV is likely to be extended with the immediate target being the resistance area at 0.81 USD.

The daily RSI is currently at 40 and is trending towards the neutral zone of 50, reflecting a significant weakening of selling pressure.

Daily CRV/USDT Chart | Source: TradingViewOn the 4-hour timeframe, the bullish divergence signal further reinforces this outlook: while the price makes a lower low than Monday, the RSI records a higher high – a sign that often indicates a potential reversal or at least a short-term bounce back.

If the upward momentum is maintained, CRV may rise to challenge the 50-period EMA on the 4-hour chart at 0.79 USD. A solid candle close above this level will open up the opportunity to break out to the next resistance zone at 0.84 USD. Conversely, if selling pressure returns, the price may slide back to retest the bottom of 0.71 USD established on Monday.

CRV/USDT chart 4-hour | Source: TradingViewSN_nour