Convex finance is a platform for CRV token holders and curve liquidity providers to earn extra interest rewards and curve trading fees on their tokens. In short, Convex finance offers boosted curve staking. It is meant to be a stablecoin which means that its worth is tied to US Greenback and gives customers a safe place to deposit cash.
CVX price has reached the demand zone and broke the support of $5. During the start of April month, CVX price formed support at $5 level and moved upwards to create a high at $6.369 level giving return 29% in a span of fifteen days. Bullish rally did not sustain due to interference by sellers causing a correction in the price.
CVX price is currently trading below the low of $5 giving rise to downfall. If bears are able to push price below $4.74 level, there might be a probability for price to fall directly to $3.06 level if $4 level is not able to halt bearish momentum which will affect CVX losing gains it made in 2023.
CVX price is trading below 20,50,100 and 200-day EMA indicating a strong bearish sentiment on CVX price. Buyers are responding to the demand zone and the current candle is facing rejection from the low of $4.85 level. If buyers are able to form a support by returning back above $5 and a rise in bullish momentum can possibly push price to immediate resistance of $4.46. The year-to-date return is still in the green side and is currently at 54.48%. Convex finance has already reached the red zone for weekly as well as monthly gains.
CVX Technical Analysis:
Chaikin money flow score is -0.7 indicating bearishness in the market which can be concluded through the price action as price has breached demand zone. RSI has come down below 40 mark and is on the way to reach oversold zone if price is able to break the $4.74 level. CVX price has reached lower band of bollinger and might stay near lower band if breakout happens. There is a possibility of reversal in the price if bulls start to gain momentum. The longs/shorts ratio is 0.89 with 47.13% longs and 52.87% shorts indicating higher number positions are on sell side.
Conclusion:
The market structure and price action is highly bearish for convex finance. The technical parameters indicate that there might be a possibility of break out in upcoming days if buyers do not jump in the market to protect the demand zone.
Technical levels:
Major support: $4 and $3.06.
Major resistance: $5.46 and $6.265.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/08/convex-finance-price-prediction-cvx-price-on-verge-of-breakout/