August 15, 2022

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CVX Price Analysis: Post-Correction Rally Aims To Surpass $8.2

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
CVX/USDT Chart

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

Source: Coingape