CRV bounces back after Trump's supportive move for DeFi – Has the bullish trend begun?

In the past 24 hours, Curve DAO (CRV) has witnessed a strong price increase following the latest legislative decree by President Donald Trump – a law aimed at protecting the Decentralized Finance space (DeFi) and related assets.

The optimistic sentiment in the market continues to be driven by investors in the spot market intensifying their accumulation of CRV tokens. However, a short-term correction may occur before prices continue their stronger upward trend in the medium term.

How does President Trump’s new law affect CRV?

On April 10, President Donald Trump signed into law the first cryptocurrency bill in U.S. history — a move seen as a clear protective measure for the DeFi sector.

This law halts the efforts of the U.S. Internal Revenue Service (IRS) to implement the so-called “DeFi Broker Rule” — a regulation that has sparked much controversy because it requires both custodial and non-custodial platforms to report trading activity periodically to the IRS.

Statement from Congressman Mike Carey, member of the House Committee on Financial Services and Taxation:

“The DeFi broker rules not only stifle domestic innovation but also severely invade privacy and place enormous pressure on an already overloaded IRS tax system during tax season.”

Immediately after this news, DeFi tokens reacted positively, led by CRV – the native token of Curve. The price of CRV surged by 19%, bringing the total increase for the month to 48%.

Therefore, Bitcoin Magazine analyzed the market to assess investor reactions, while providing an opinion on whether this uptrend can be sustained.

Investors accumulate CRV, expect a price close to $2

Immediately after the new law was announced, traders in the spot market quickly accumulated about 1.15 million CRV, equivalent to nearly 667,000 USD, according to net inflow data recorded from exchanges.

This buying move likely reflects a long-term outlook, especially as a large amount of CRV tokens has been withdrawn to personal wallets – a sign that investors intend to hold for the long term.

Source: IntoTheBlockThe In/Out of the Money Around Price (IOMAP) currently indicates that the resistance ahead is relatively weak, implying that the price of CRV still has room for growth in the short term.

As of the time of writing, IOMAP has not recorded any significant resistance level until the mark of $1.83 – where it is estimated that approximately 899.95 million sell orders are waiting to be matched.

Source: IntoTheBlockIf the buying pressure continues to be sustained, CRV has the potential to approach this important resistance zone.

Slight adjustment before breaking out again?

CRV is likely to undergo a slight adjustment before continuing its upward trend. Currently, the price is approaching a significant resistance area around the $0.61 mark – an area that previously caused CRV to be rejected in its last attempt.

However, the pressure for adjustment this time is assessed as not too strong, especially in the context of the market sentiment gradually shifting to an optimistic state. The three price points expected to play a supportive role, helping to consolidate the upward trend include: $0.549, $0.509, and $0.478 – depending on the market momentum developments.

CRV/USDT 4-hour chart | Source: TradingViewIn the derivatives market, short-term selling pressure is showing signs of increasing as the funding rate based on open contracts (OI) has turned negative – indicating that short selling activity is being intensified.

Nevertheless, the recent price increase of CRV reflects a strong recovery of confidence, especially after the market received more positive signals from the U.S. government regarding the regulatory framework.

Even if a short-term correction occurs, the strong accumulated demand along with thin resistance suggests that the bulls still have plenty of room to sustain the upward momentum in the near future.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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SN_Nour

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