Curve DAO token price surged to its highest point in a month as investors switched back to decentralized finance (DeFi) platforms. The CRV token is trading at $1.1590, its highest level since June 11th. It has recovered over 113% from its low this month.
DeFi blue chips correlation
Curve DAO token is the native cryptocurrency for Curve Finance, the third largest DeFi platform in the world. Only Maker and Aave are larger. According to DeFi Llama, Curve has a total locked value (TVL) of more than $5.25 billion.
Curve Finance is a decentralized exchange that uses a technology known as automated market maker (AMM). On its platform, users can easily transact and exchange their stablecoins like Dai, USD Coin, True USD, and Binance Coin.
Additionally, the platform operates Curve Pools, a platform that allows people to earn interest simply by holding stablecoins and packaged cryptocurrencies. These liquidity pools play an important role in facilitating the AMM function.
Curve DAO Token is the native cryptocurrency for the network. It is mainly used for platform governance, which means users can easily vote on important issues. It is similar to Uniswap’s UNI and Maker’s MKR.
See how to buy Curve DAO.
The CRV token has moved away from the performance of other major coins like Bitcoin and Ethereum. At the same time, it had a strong correlation with other major DeFi tokens. In recent weeks, most tokens like Compound, Spirit, and Uniswap are all up more than 100%.
This recovery coincided with the collapse of popular centralized companies like Vauld, Voyager Digital, and Celsius. Investors seem to believe that major platforms like Curve will survive and thrive after the current crypto crash.
Curve DAO token price prediction
The four-hour chart shown above shows that the CRV token has been in a strong uptrend for the past few weeks. The coin has managed to move above the key resistance point at $1.072, which was the highest point on June 8th.
It has also moved above the first resistance of the standard pivot point. Most importantly, it broke above the 25-day and 50-day moving averages and is now approaching the upper side of the ascending channel.
Therefore, the coin’s uptrend will only be confirmed if it manages to move above the ascending channel. In this case, the next key resistance to watch is the R2 pivot point at $1.2330. Another possibility is that the coin will pull back after hitting a key resistance.
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