Published 5 hours ago
The CVX/USDT technical chart shows the last two months’ recovery rally wobbling between two trendlines, indicating the formation of a parallel channel pattern. The recovery rally has marked its recent top at the $8.23 mark indicating a 143% gain from the June bottom support of $3.4. Last week the altcoin went through another retracement, offering a discount opportunity for traders
Key points:
- The CVX price rebounded from the support trendline with the morning star candle
- The RSI indicator shows a bearish divergence in the daily chart
- The intraday trading volume in the Convex Finance Token is $12.3 Million, indicating a 45.2% gain
Source- Tradingview
Over the past two weeks, the CVX price reverted twice from this resistance, validating it as a significant supply region. Thus, the altcoin witnessed a sharp sell-off last week, displayed by seven consecutive red candles. The minor correction tumbled the price by 18.8%, testing the confluence support of the support trendline and $6.68.
The decreasing volume during the retracement phase reflected that market participants are less interested in selling nowadays. Moreover, on August 6th, the CVX price jumped from $6.68 support with increased volume activity bolsters the same cause.
If the CVX price sustains above the rising support trendline, the buyers may trigger another bull cycle that surpasses the $8.23 resistance. The potential rally could surge 143.5 higher to the $9.1 mark.
On the other hand, if the sellers force a candle close below the support trendline. Thus, the altcoin will be poised for a deeper correction which may test the $5 support.
Technical analysis
ADX indicator: for a minor retracement last week, the ADX slope shows a significant downfall, indicating weak bullish momentum. If the indicator slope continues to lose ground, the traders will get more confirmation for pattern breakdown.
EMAs: the 20-and-50-day EMA turned sideways indicates a neutral bias in the short term. Moreover, a breakdown from these EMAs would flip them into suitable resistance to reinforce the further downfall.
- Resistance levels- $8.23 and $9.12
- Support levels- $6.68 and $5.77
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/cvx-price-analysis-post-correction-rally-aims-to-surpass-8-2/