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Convex Finance Price Spikes 53% Today Despite The Market Slump — What’s Next For CVX?

Last Updated June 17, 2024 4:31 PM
Nikola Lazic
Last Updated June 17, 2024 4:31 PM

Key Takeaways

  • CVX value surged 53% in 24 hours, breaking records.
  • Trading volume spikes highlight growing interest in Convex.
  • Potential new bull phase for CVX after recent low.

Convex (CVX), associated with Curve Finance for enhancing yields, has seen a remarkable surge. Its value climbed over 53% in just 24 hours, paired with unprecedented trading volumes on key cryptocurrency exchanges.

The cryptocurrency market today is trading sideways, continuing the downtrend from over the weekend. Despite this, CVX’s price made a staggering increase. Is there any more room for gains, or was this a temporary spike? 

CVX Trading Volume Hits Records 

On June 16, Binance observed a record-breaking single-day trading volume of $32 million in CVX/USDT, highlighting growing trader interest in Convex. Bybit also reported significant activity, with $120 million in CVX/USDT perpetual contracts traded within the same timeframe.

This notable increase in trading volumes demonstrates the rising demand for CVX, particularly in the derivatives market. CVX’s surge in value and market activity mirrors a broader trend in the decentralized finance (DeFi) sector, where yield-boosting solutions like Convex are increasingly popular.

The demand most likely comes from Curve Finance’s substantial increase in inflows into vote-escrowed CRV (veCRV) tokens, totaling 19.67 million CRV tokens—six times the weekly inflation rate. These inflows include direct locks of CRV tokens and locks through platforms such as Convex Finance, StakeDAO, and Yearn.

CVX Price Analysis 

Since its all-time high of $64 in January 2022, the price of CVX has been in a bear cycle. In June of the same year, it first dipped below $3. Trading in a slightly descending range, it formed lower highs and lower lows, starting from $8 in July 2022. In March 2024, yet another lower high of $5.60 was seen, after which it made a downturn to $2 on June 13. 

CVXUSD | Credit: Nikola Lazic/Tradingview

The 150% increase since its recent low could have signaled the beginning of a new bull phase. With the daily chart RSI and MACD indicating a bottom on June 13, today’s spike brought it to the overvalued zone. 

We could see further upside movement for another interaction with the descending resistance at around $5. Still, to confirm its bull phase, it should make a higher high and a higher low on the expected downturn. 

After it does so, the real confirmation would come as a breakout above its March high of $5.60, surpassing $6. CVX could look at a more significant upside and embark on a sustainable journey above $20. 

Alternatively, if the price resists at the $5 area again, it could continue its descending structure for a lower low. In that case, CVX could be looking at values below $2. 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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