Convex Finance: CVX Price Defends $5.00, Turnaround Possible?

• Convex Finance price fell 11.81% in the previous month.
• CVX price is stuck in the range between $5.00 to $6.00.
• Convex finance price is trading below the 200 day EMA showcase downtrend. 

Convex Finance price fell 11.81% on a previous month and down by about 30% from the recent peak at $7.279. CVX price rejected the 200 day EMA showcase positional trend is on the downward direction. However, prices are struggling to hold the 50 day EMA to keep the short term trend in favor of the bulls. CVX price seems to be getting stuck in the narrow range between $5.00 to $6.00 and expected to break either side in the coming months. 

Convex Finance price is trading at $5.289 with an intraday decline of -0.75% and 24 hour volume to market cap ratio is at 0.0152. The CVX/BTC pair is trading at 0.0001879 with an intraday decline of -0.27% showing minor divergence. At the beginning of March, Convex Finance price faced resistance near $6.00 and dropped below the 50 day EMA which disturbed the sentiment. Prices later declined by forming lower low swings and lost the majority of its previous gains. 

In mid-March, CVX price took support at $4.734 and formed a Doji candle pattern which shows signs of a trend reversal. CVX price recovered about 20% from the support level but the momentum halted near the 50 day EMA and prices entered into consolidation.

Will Convex Finance Price Re-bound?

Convex Finance price defended the $5.00 mark and might be consolidating for the base creation. CVX crypto trading volume decline denotes prices might trade sideways for some more time. However, if the overall market sentiment remains bullish, then the probability of upward range expansion will substantially increase. 

Technical analysis suggests CVX price is near the demand zone and responsive buyers seem to be active at the lower levels. Therefore, if price holds the 50 day EMA then short term rebound is possible. On the other hand, if the price drops below $4.00, then bears may try to drag it further down toward yearly lows. 

When Does CVX Price Gain Momentum?

CVX price went up by 4.82% in the previous week and formed a bullish candle pattern on a weekly time frame. However, the prices will gain momentum only when bulls succeed to break the $6.00 hurdle level. Till then it is expected to remain in consolidation. Technical indicators like MACD had generated a positive crossover and histogram bars are on rise indicating mild bullishness. The RSI 49 at neutral territory denotes equal level of tug of war between buyers and sellers. 

Conclusion

Convex Finance price is down by about 30% from the recent peak. It lost the majority of the gains generated in the past couple of months. However, CVX price took support near the demand zone and showed signs of base formation. As such, downside seems to be limited and a short term rebound is possible. 

Technical levels

Resistance levels : $7.279 and $8.686

Support levels : $4.734 and $4.030

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.