Curve DAO Token (CRV) experienced a 10% increase in the last 24 hours after the inflation rate dropped to 6.35% on August 12. This adjustment revived investor interest and positioned CRV for a potential ongoing rise. A lower inflation rate generally means fewer new CRV tokens entering the market.
What’s Happening on the Curve Front?
Token supply reduction is expected to positively impact the token’s price, which has fallen more than 95% since its launch. When supply decreases and demand increases, an asset’s price usually rises.
On August 13, rumors about the drop in CRV’s inflation rate led to an increase in trading activities. The token’s daily trading volume increased by 103% in the last 24 hours. At the time of writing, CRV’s daily trading volume was $244 million, currently at a two-month high.
CRV’s increase in trading volume over the last 24 hours indicates strong market interest in the DeFi token, supporting the double-digit price increase during the same period. Additionally, CRV’s positive daily active address (DAA) deviation at the time of writing suggests a sustainable rise with continued demand for the altcoin.
This data compares an asset’s price movements with changes in the number of daily active addresses. Investors use this to monitor whether price movements are supported by relevant network activity. When an asset’s price DAA deviation is positive during an uptrend, it can be a bullish signal indicating that the price increase is supported by sufficient demand to sustain the upward trend.
CRV Chart Analysis
CRV is positioned above the Ichimoku Cloud when evaluated on a daily chart at its current value. This indicates that the market is in a bullish phase, and as of the writing date, the token is moving towards Leadership Area B. Leadership Area A and Leadership Area B are fundamental components of the Ichimoku Cloud, an indicator that determines support and resistance levels and potential market reversals. While standing above Leadership Area A, CRV’s rise above Leadership Area B could signal the continuation of the bullish trend.
If this happens, the token price could reach $0.34 and even rise to trade at $0.44. However, if market sentiment shifts from bullish to bearish, it could lead to a price drop below the Ichimoku Cloud, and if this occurs, CRV could change hands at $0.18.
