Is Convex Finance (CVX) Poised For 25% Gains Next Week?Is Convex Finance (CVX) Poised For 25% Gains Next Week?
Meta Description: Convex Finance price experienced a strong downturn in tandem with the broader market crash
The positive divergence in the price DAA divergence indicator is rising indicating a potential recovery in the price ahead.
The CVX/USD technical chart highlights a consolidation near the demand zone in the recent sessions.
While the broader market headed for a recovery with BTC again nearing the $60K mark and Ethereum claiming $2600. On the other side, Convex Finance failed to rise parallelly and has been stuck in a zone near the demand zone.
CVX price experienced a strong downturn in tandem with the broader market crash. The price suffered a strong selloff from the $3.5 level. At the time of writing, CVX price was hovering at $2.3, near a psychological demand of $2 level.
However, the analysts have recorded a significant development in the price DAA divergence in the recent session which adds the possibility of price recovery in the crypto. Also, the CVX cryptocurrency is near a strong demand zone and a psychological level of $2 level.
Positive Divergence in Price DAA Divergence Metrics Adds Hope To Investors
The Convex Finance cryptocurrency price illustrates the formation of a consolidation near the demand indicating a neutrality in the trend. However, the analysts have noted a significant development in on-chain metrics: price DAA divergence.
Source: app.santiment.net
The positive divergence was observed to be rising in the price DAA (Daily active addresses) divergence metrics. A development in the positive divergence in the indicator reflects a possible resurgence in the price.
Moreover, the daily active address indicates the unique number of users that have taken part in a transaction intraday. As evident from the chart, the 24 hour active address curve was observed to be rising.
Curve Finance Price Technical Analysis
Moreover, From a technical point of view a frequent crossover was observed between the key exponential moving average of 20 and 50 days suggesting a sideways trend outlook in the short term. Also, the CVX price was lagging 28% from the 200 day EMAs suggesting a bearish trend prevailing in the long term.
Moreover, the daily chart highlights the formation of a descending triangle pattern with the price currently consolidating near the demand zone of $2 level. The consolidation comprises $2 level as support and $2.6 level as a resistance.
Source: TradingView
Now, if CVX price manages to break out of the consolidation above the $2.6 level, it may continue to edge higher till the next major resistance of trendline resistance close to $3.25 indicating a nearly 25% potential on the higher side.
At the time of writing, the RSI line was placed at 44.3 points and that of the 14 day SMA line was placed close to 45 points. Both the lines were placed below the mean line indicating a consolidation in the price at the moment.
Convex Finance (CVX) is currently consolidating near the $2 demand zone after a significant downturn from $3.5. Moreover, the analysts have noted a positive divergence in daily active addresses (DAA), suggesting potential upward movement.
Currently, The price lagged 28% behind the 200-day EMA, indicating a bearish long-term trend. However, a frequent crossover between the 20 and 50-day EMAs suggests a sideways short-term trend. A breakout above $2.6 could lead to a rise towards $3.25, indicating a 25% potential gain. RSI and SMA lines indicate current consolidation.
