Civic Price Analysis: CVC Trading In Tight Trading Range — Can the Bulls Garner Momentum to Break Above?

Civic has seen a small 2.22% price decline over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $0.1083 after seeing a small week-on-week price increase of 0.93%.

Created in June 2017, Civic is a cryptocurrency which is designed to handle identity management. It is a decentralized identity management service that allows users to authorize and protect the use of their identity in a real-time manner.

Headed by Shark Tank South Africa investor, Vinny Lingham, the Civic ICO managed to raise over $33 million in funding. The main goal of the Civic team is to create a low-cost and secure Identity Verification Service (IDV) that will run on top of a blockchain. In the case of Civic, the blockchain they have decided to use is Ethereum.

Civic is currently ranked 123rd in terms of overall market cap across the entire industry. It has a total market cap value of $37 million after the 14-month old coin suffered a 48% price decrease over the past 90 trading days. Civic is currently trading at a price that is 92% lower than its all-time high price.

Let us continue to analyze price action for Civic over the long term and update ourselves with price action.

Civic Price Analysis

CVC/USD – LONG TERM – DAILY CHART

Analyzing the market from the long-term perspective above, we can see that price action for Civic had experienced a significant bullish run towards the end of 2017. The market started at a low of $0.20 on December 8, 2017 and extended to an all-time high price of $1.46 on January 3, 2018. This was a price increase totaling 615% from low to high.

We can see that after placing the high, price action rolled over and declined rapidly. It had originally found some form of support at a downside 1.272 FIbonacci Extension level priced at $0.2352 during February 2018.

However, price action continued to decline throughout the rest of the year. We can see that it has recently found support at a downside 1.414 Fibonacci Extension level priced at $0.09760.

Let us continue to analyze price action for the market a little closer over the shorter term to highlight any potential support and resistance areas.

CVC/USD – SHORT TERM – DAILY CHART

Analyzing price action from the short-term perspective above, we can see that the recent support at the long-term downside 1.414 Fibonacci Extension level (drawn in red) was further bolstered by a shorter-term downside 1.272 FIbonacci Extension level (drawn in blue) priced at $0.097.

As the market approached this area of support, the bulls defended the area aggressively, allowing for price action to stay above this level.

Price action has now established a large trading range over the previous 14 weeks, trading between the long-term 1.272 Fibonacci Extension level (drawn in red) priced at $0.2352 as the upper boundary of the range and the downside short-term 1.272 Fibonacci Extension level (drawn in blue) priced at $0.097.

If the bulls can maintain themselves above the lower boundary of the range and push the market higher, we expect immediate significant resistance to be located at the $0.16 handle. This price level has provided significant support during the month of July 2018 and is therefore expected to provide significant resistance moving further.

The 100-day moving average is also hovering around this price range which is expected to add further to the resistance expected in this area.

Higher resistance above the $0.16 handle will then be expected at the upper boundary of the trading range priced at $0.23. If price action can continue further higher, then more resistance can be expected at the psychological round number handle of $0.30.

Alternatively, if the bears step into the market and continue to pressure price action lower, we expect immediate support to be delivered at the lower boundary of the trading range priced at $0.097.

Further support expected below this level can be located at the short-term downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.052.

The technical indicators within the market are largely favoring the bears at this moment in time. The RSI is trading below the 50 handle, indicating that the bears are in control of the momentum within the market.

However, the recent rise of the RSI from trading in oversold conditions to trading towards the 50 handle could indicate that the previous bearish momentum is starting to show signs of failure.

Let us continue to quickly analyze price action for Civic relative to Bitcoin over the long term.

CVC/BTC – LONG TERM – DAILY CHART

Analyzing the market from the long-term perspective above, we can see that the Civic market had experienced a significant bullish run against Bitcoin toward the end of 2017. Price action started from a low of 1,470 SATS on December 8, 2017 and extended to an all-time high of 9,497 SATS on January 3, 2018. This was a price increase totaling 510% from low to high.

We can see that after placing the all-time high, price action rolled over and declined significantly. It dropped throughout the entire year until finding recent support at a downside 1.414 Fibonacci Extension level priced at 1,626 SATS. We can see that for the past 2 trading months, this area has provided significant support for the market.

Let us continue to analyze price action for Civic against BTC a little closer over the shorter term and highlight any potential support and resistance areas.

CVC/BTC – SHORT TERM – DAILY CHART

Analyzing the market from the short-term perspective above, we can see that the support at the long-term downside 1.414 Fibonacci Extension level (drawn in blue) was significantly bolstered by a short-term downside 1.414 Fibonacci Extension level (drawn in red) priced at 1,625 SATS.

This combined area of support is expected to hold as the market moves forward.

If the bulls can regather momentum at this area, we expect immediate resistance higher to be located at the short-term downside 1.272 Fibonacci Extension level (drawn in red) priced at 1,984 SATS. Further resistance above this level can then be expected at the long-term downside 1.272 FIbonacci Extension level (drawn in blue) priced at 2,419 SATS.

This area of resistance will require significant momentum to overcome due to the 100-day moving average trading closely within this area.

Alternatively, if the bears do push price action below the support at 1,625 SATS, immediate support can then be expected at the short-term downside 1.618 Fibonacci Extension level priced at 1,109 SATS, followed by the psychological round number handle of 1,000 SATS.

The technical indicators are still favoring the bears at this moment in time as the RSI trades below the 50 handle. However, if the RSI can break above 50, we can expect this market to begin to regain some of the losses incurred over the course of the trading year.

Related: What is a Digital Identity, and Why Is It Important For You To Manage Yours?