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Convex Finance recovers from the previous day’s meltdown. The price is gliding in a short-term trading range of $1.22 and $1.00. The market cap of the coin shows not much change with a merge gain of 2$ over the past 24 hours above $500M.
The market structure suggests the price could break the range to the higher side. However, Convex Finance bulls face challenges with a decline in volume. As of press time, CVX/USD is trading at $1.08 with 4.75% gains. The 24-hour trading volume dropped more than 26% to $113,515,883.
- Convex Finance trades in a familiar trading range with a bullish bias.
- Bulls attempt to move beyond the $1.10 level, a decisive break could start a fresh upside run.
- A major upside hurdle is placed near $1.22.
Convex Finance consolidates for a fresh directional setup
Convex Finance on the daily chart is trading in a “Symmetrical Triangle” pattern. The Symmetrical Triangle is a volatility contraction pattern. This means volatility in the market is shrinking and a sign the market is likely to break out, in the near future.
The price after falling from its resistance pattern’s line of $$1.4 to $0.97, went into consolidation for more than two weeks. There is a higher probability of price giving breakout from its zone on the higher side, breaking immediate resistance placed around $1.22.
On moving higher the Convex Finance bulls would attempt to test the high of August 17 at $1.33 followed by the psychological $1.40 level.
On the other hand, a breakdown below $1.00, will take the price to the lows of July 12 ( $0.80), & even down further.
On the four hourly charts, Convex Finance formed a bearish “Flag & Pole” pattern. The bearish flag is a candlestick chart pattern that signals the extension of the downtrend once the temporary pause is finished. As a continuation pattern, the bear flag helps sellers to push the price action further lower. With falling price along with rising volumes indicates that more big money players are entering this fall.
According to this structure, if the price breaks down the pattern’s support on the lower side, we can expect a heavy fall of up to 161.8% Fibonacci Extension ($0.66).
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The nearest support is the previous swing low ($0.97), whereas the nearest resistance could be found at ($1.22). There is a higher probability of the price breaking the resistance level. “Buy on fall” is the best course of action we can go with.
On the other hand, a renewed selling pressure below the ($1.00) level could invalidate the bullish outlook. And the price can move toward ($0.88).
Convex Finance looks neutral on all time frames. Above ($1.22) closing on the daily time frame, we can put a trade on the buy side.
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