- CRV saw a massive 24-hour surge following Trump’s new legislative order that grants DeFi assets independence
- Spot market investors have continued to increase their exposure to the asset
In the last 24 hours, Curve DAO [CRV] has seen a significant rally following Trump’s latest legislative order, one that protects Decentralized Finance (DeFi) and related assets.
Buying sentiment has since continued to strengthen, with spot market traders accumulating a significant amount. However, there’s a likely drop incoming before a sustained rally upwards.
How does President Trump’s bill affect CRV?
On 10 April, the President of the United States, Donald Trump, signed the first-ever crypto bill into law, protecting DeFi.
This new law is set to prevent the Internal Revenue Service (IRS) Digital Assets Sale and Exchanges Rule from being passed into law. This bill, also known as the DeFi Broker Rule, was set to enforce both custodial and non-custodial services to submit reports to the IRS at intervals.
Representative Mike Carey of the House Ways and Means Committee stated,
“The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season.”
Following the news, DeFi tokens reacted positively. CRV, the native token of Curve, led the charge. It surged by 19% and pushed its monthly gains to 48%.
Hence, AMBCrypto analyzed the market to determine how participants might be reacting and whether the rally could be sustained or not.
Traders accumulate CRV, eyeing a near $2 rally
Following the update, traders in the spot market accumulated 1.15 million CRV, worth approximately $667,000, as indicated by the exchange netflows.
This purchase is likely long-term, especially as this cohort of traders moved the CRV into private wallets for holding.
Source: IntoTheBlock
The In/Out of the Money Around Price (IOMAP) indicator revealed minimal resistance ahead, hinting at more room for growth.
At the time of writing, the IOMAP highlighted no strong resistance until $1.83. At that level, roughly 899.95 million CRV sell orders may exist.
If buying pressure persists, CRV could climb towards this resistance zone.
This means that if buying sentiment in the market continues to climb, CRV could record a price run-up to the $1.83-level.
Source: IntoTheBlock
A drop before a further push
CRV could witness a price cooldown before a sustained market rally. At the time of writing, it was trading into a key resistance level at $0.61 – A level which previously forced the price lower the last time the asset hit this level.
This drop is unlikely to be significant, especially given the prevailing bullish sentiment. Three levels are expected to act as support to push the asset further – $0.549, $0.509, or $0.478, depending on market momentum.
Source: TradingView
In the derivatives market, selling pressure seemed to be building too. The OI-weighted funding rate flipped negative too – A sign of a hike in short activity.
CRV’s latest rally reflected renewed confidence, especially on the back of regulatory clarity from the White House.
While a brief dip may happen soon, strong accumulation and minimal resistance suggested bulls may still have some room to run.
