Curve DAO (CRV) – Preparing for an Explosive Growth?

Curve DAO is the governance token of the Curve Finance platform, a leading DeFi protocol that focuses on the efficient trading of stablecoins and liquidity provision. Curve is known for its unique algorithm that minimizes slippage, making it attractive for large traders and institutional parties. Additionally, Curve plays a significant role in the broader DeFi ecosystem by optimizing liquidity sources and deploying veTokenomics (such as veCRV) to reward user loyalty. It is one of the fundamentally strongest DeFi projects, making it a favorite among investors and whales.

Current situation: A pullback after a 500% rally

After an impressive rally of over five hundred percent from the lows, CRV has recently made a pullback. Interestingly, this pullback has occurred to the golden pocket, i.e., the area between the 0.618 and 0.65 Fibonacci retracement. This is an important level where demand often arises, as it serves as a support point after an upward movement. The price reaction we see here indicates possible bullish continuation.

Why is this bullish?

1. Golden Pocket-reaction: The test level suggests that the retrace phase of the correction (wave 2) may be completed, allowing the price to begin a new impulse movement (wave 3).
2. Elliott Wave theory: We are now in the ideal setup for a potential wave 3, a phase that historically is the most explosive part of the movement. This is further supported by similar patterns from previous cycles, as was seen with ADA in 2019-2020.

Elliott Wave Analysis: From Wave 2 to Wave 3

Where are we now?

Based on the Elliott Wave analysis, Curve DAO appears to have completed the wave 2 phase, with the golden pocket serving as a crucial level. We may be on the eve of wave 3, the strongest impulse movement in the cycle.

• Wave 3 targets calculated via Fibonacci extensions:
  • 1.618 extension: $4 – a movement of over 300% from the current level.
  • 2.0 extension: $8 – a potential 700% growth scenario.
  • Macro target (1.236 extension): $15 – an almost 15x increase, in line with ADA’s historical rally to the 1.236 in the previous cycle.

Comparison with ADA:

In previous cycles, we saw that ADA also completed its wave 2 in the golden pocket and then began an explosive wave 3. Curve DAO shows striking similarities, making this scenario extra credible.

The role of veCRV and Michael’s commitment

A notable bullish signal is the news that Michael Egorov, the founder of Curve, recently staked more than 200 million CRV again until November 2028. This suggests enormous confidence in the future of Curve Finance and creates a unique situation in the market.

Why is this bullish?

1. Long-term commitment: By staking CRV for a long time, Michael limits the availability of liquidity in the market, which can have a positive impact on the price with increasing demand.
2. VeCRV model: Curve’s veTokenomics model rewards veCRV holders with governance rights and a share of the transaction fees. This creates sustainable demand for CRV tokens.

What is the potential of Curve DAO?

The technical setup combined with fundamental strength makes CRV an attractive choice. The recent pullback to the golden pocket and the bullish reaction to it, along with the founder’s commitment, provide a solid basis for a next rally.

Short-term targets:

• Wave 3: $4-$8 (300%-700% growth).

Long-term targets:

• 1.236 extension: $15 (15x from the current level).

With the strong fundamentals of Curve DAO and the technical setup, the current phase seems more of a stepping stone to new highs than an endpoint of the rally. The CRV token appears to continue to play a key role in the broader DeFi ecosystem, and the risk-reward ratio is particularly attractive for investors who understand the cycles.

Disclaimer: Historical performances offer no guarantee for the future, and corrections are always possible. Nevertheless, CRV appears to be in a healthy position to grow further.

Disclaimer: The analyses above are based on technical patterns and trends in the crypto market. It is crucial to emphasize that this information is not intended as financial advice. Cryptocurrency investments inherently carry risks and are subject to volatility. For investment decisions, it is recommended to do your research, seek financial advice, and only invest what you can afford to lose.