Curve DAO (CRV) has been on an upward trajectory over the past week, gaining more than 19%. Despite facing a challenging 2024, where the token erased much of its gains from November and December, there are signs that it might be poised for a recovery. With the bulls now targeting the critical $0.55 resistance level, the market is buzzing about the possibility of a 12% rise in the near future.

A Look Back at Curve’s Performance

The performance of Curve DAO token in 2024 has been anything but smooth. After making significant strides in November, the token retraced a substantial portion of those gains in the following months, failing to sustain its momentum from the latter part of 2024. While Curve made impressive gains in November, it didn’t entirely break free from its long-term downtrend.

However, despite the pullbacks, there was a notable bullish structure break on the weekly chart. This signaled potential strength and investor confidence, as such breaks typically suggest a shift in market sentiment toward the positive. Yet, it’s important to note that during a bull run, the coins that perform well early on are usually the ones that continue to build upon their gains. In the case of Curve, while the token had a bullish surge in November, it wasn’t enough to escape the broader market downtrend.

Current Market Sentiment and Recovery Potential

Zooming into the 1-day chart, the market structure for Curve reveals mixed signals. Although the token’s On-Balance Volume (OBV) hasn’t seen significant declines since December, it has consistently made higher lows over the past three months. This suggests that, while there has been a retracement, selling pressure is easing, making room for potential recovery.

The OBV’s gradual upward movement points to a lack of strong selling volume, which typically indicates that there is a chance for the price to recover swiftly once buying pressure increases. Additionally, the Relative Strength Index (RSI) has recently climbed above the neutral 50 mark, signaling a potential shift in momentum toward the bulls.

The $0.55 Resistance and What It Means for CRV

Despite the positive signals, Curve still faces a significant hurdle in the form of the $0.55 resistance. This level has proven to be a strong point of contention in the past, and the bulls must break through it if they are to target higher price levels. A successful breach of the $0.55 mark would mark a shift in the market’s short-term structure from bearish to bullish, opening the path toward further gains.

According to technical analysis, if Curve can break through this local resistance, the next key resistance levels to watch are the Fibonacci retracement levels, which could further shape the token’s price action. However, as is typical in volatile markets, any attempt to break through resistance could be followed by a minor retracement. For now, it’s crucial to keep an eye on how the market reacts as Curve approaches this critical $0.55 level.

Liquidation Heatmaps: A Key Factor in Price Action

One additional factor influencing Curve’s potential price action is the liquidation heatmap. The 1-month liquidation heatmap reveals that there is significant liquidation activity between the $0.50 and $0.55 range, which could provide the necessary fuel for Curve’s price to climb higher.

These liquidation levels are important because they represent areas where leveraged positions might get liquidated, potentially triggering additional buying pressure that propels the price higher. However, if Curve reaches the $0.55 mark and faces resistance, it could experience a minor pullback toward $0.47, as indicated by shorter-period liquidation heatmaps.

What’s Next for Curve?

The next few days will be crucial in determining Curve’s direction. If the buying volume picks up, the chances of a successful breakout above $0.55 increase, and a dip toward $0.47 may be less likely. On the other hand, if the market fails to generate enough buying pressure, the token may struggle to break past the resistance and could face further retracements.

In conclusion, Curve DAO (CRV) is at a critical juncture. The token’s recent performance and signs of easing selling pressure suggest that a recovery could be on the horizon. If the bulls can push through the $0.55 resistance, a 12% rise might just be the beginning of a larger bullish move. However, traders should be mindful of potential pullbacks and stay alert for changes in market sentiment as Curve moves forward.