- Convex Finance token had recovered 68% form recent lows at $3.00 forming a bullish reversal pattern
- CVX Token price had reclaimed its 50-day EMA and was heading toward the supply zone
- CVX crypto price surged 13% intraday which takes the RSI above (84) overbought territories.
Convex Finance token price was trading with bullish cues and the buyers are trying to hold the price above the 50-day Exponential Moving Average (EMA). According to Coinglass, In the last 24 hours, the Long and Short ratio stands at 0.97 which indicates mild bearishness in the derivative segment but the price action seems to be in favor of the bulls. Currently,the CVX/USDT pair is trading at $4.850 with intraday gains of 10.03% and 24-hour volume to market cap ratio stood at 0.1224.
Is the CVX Token rally fake or real ?
On a daily time frame, Convex Finance token price had shown a massive recovery of 68% in a short span of time and had managed to hold the prices above its 50-day EMA. From the past couple of weeks, CVX price has been in a bearish grip and slipped while forming lower lows and swings. However, recently the price level took support at $3.00 and demonstrated an upward reversal in favor of the bulls.
In January, CVX crypto prices formed a bullish hammer candle near the long term demand zone which was followed by a spurt of aggressive buying from the lower levels indicating that some gunniue buyers who expected a price-rise, might have taken long positions. However, the price level is near the supply zone and $6.000 will act as an immediate hurdle for the bulls followed by the next hurdle which will be the downward sloping 200-day EMA and a swing high resistance at $8.000.
CVX price has been on the rise for the past 9 days pushing the RSI curve to the overbought territory. Therefore, if the price triggered a minor sell-off from higher levels, then $4.00 and $3.00 will act as support levels. The MACD curve has generated a positive crossover and the histogram bars are on the rise indicating a strong bullish trendand the rising volume bars shows that the buyers are still active and waiting for an opportunity to create long positions.
Summary
The Convex Finance token had surprised investors with its massive up-move and the bulls have succeeded to hold the prices above 50 day EMA indicates the rally is real and sustainable but the technical indicators suggest that prices are near to overbought zone and minor correction may anytime trigger from the high levels.
Therefore, Traders may look to buy CVX near the 50 day EMA retracement and aim for the target of 6.000 and above levels by keeping $3.500 as SL. However if prices slipped below $3.000 bears may take control and drag the prices down towards $2.000 levels.
Technical levels
Resistance levels : $6.000 and $8.000
Support levels : $3.500 and $3.000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/01/16/convex-finance-cvx-price-prediction-cvx-token-price-takes-u-turn-from-long-term-demand-zone/