Amid the growing volatile market, the CVX price trend teases a double-bottom reversal within a descending triangle. Furthermore, with a market cap of $211M, Convex Finance is up by 4.47% in the last 24 hours, with a potential bull cycle ahead.
Will the bull cycle in this DeFi token result in a breakout run? Let’s find out.
Descending Triangle For Convex Finance
With a prominent resistance trendline in the daily chart, the Convex Finance price action reveals a massive bearish influence. However, the constant support at the $1.985 support level, close to the $2.00 psychological mark, forms a descending trendline.
Providing multiple bouncebacks at this level, the bullish dominance is clear. Currently, with a failed attempt at a bull cycle, the CVX price has dropped down to the baseline after a minor consolidation.
The CVX price is currently trading at $2.151, with a minor intraday recovery of 0.05%, followed by a 4.62% jump last night. With a bullish candle at the baseline, the market participants expect a bull cycle to challenge the overhead trendline.
However, amid the increased broader market volatility, the chances of a breakdown are also increasing.
Technical Indicators:
MACD: The MACD indicator shows the MACD and signal lines merged in the short term, with a declining trend.
RSI: The daily RSI line struggles to showcase any bullish divergence in the recent dips to the baseline. However, compared to the bottom formation in June, the daily RSI line shows a massive bullish divergence.
Hence, the technical indicators remain polarized but favorable to the bullish team.
Will CVX Price Bounce Back?
Based on the Fibonacci levels, a bullish trend continuation will challenge the 23.60% Fibonacci level at $2.811. With a bullish breakout of the overhead trendline, the CVX price could target the 50% Fibonacci level or 78.60% level at $3.73 and $4.73, respectively.
In case of a bearish breakout, the support levels for Convex Finance are present at $1.75 and $1.50.
Also, read our Yearn. Finance Price Prediction
