Convex Finance (CVX) Has Been in a Prolonged Downtrend

Convex Finance (CVX) has been in a prolonged downtrend following its previous bull cycle, forming a descending wedge pattern on the daily chart.

Convex Finance (CVX) has been on a prolonged downtrend after its previous bull cycle, forming a descending wedge pattern on the daily chart. This structure typically suggests a potential reversal if a breakout occurs. The 1-hour chart indicates a possible final leg of the corrective wave, with price action nearing a critical support zone. A breakout could trigger a significant bullish reversal if CVX finds sufficient demand.

CVX Price Analysis The daily chart of CVX shows a classic descending wedge formation characterized by converging trendlines, lower highs, and lower lows. This pattern, completed in November, typically suggests a potential bullish breakout. The price is currently testing the lower boundary of the wedge near $1.46, a critical historical support zone. It started in July 2022 and resulted in an all-time low in November. After a recovery to a $8 high, the price reverted, dipping below $2, signaling that the rise was unsustainable. This aligns with the Relative Strength Index (RSI), which has reached oversold conditions, indicating selling exhaustion. Historically, price reversals often occur at these levels.Looking for a safe place to buy and sell CONVEX FINANCE CVX? See the leading platforms for buying and selling CONVEX FINANCE CVX.

A successful breakout above the $2.35 resistance level would be a strong bullish confirmation. Further resistance levels are at $3.50, where the descending wedge’s upper boundary aligns. Conversely, if CVX fails to hold above $1.46, further downside towards $1.00 may be possible.

CVX Price Prediction The 1-hour chart shows CVX in a short-term downtrend, testing local support near $1.82. The corrective wave structure suggests that CVX is in the final phase of wave (e) within the larger descending wedge. If this wave completes, a bullish breakout could follow.

CVX must reclaim the $2.35 resistance level for an early reversal confirmation, aligning with previous price rejection points. If price action establishes a higher low and pushes above this level, wave (i) of a new bullish impulse could begin, with potential upside targets at $3.00 and $3.50.

However, a failure to break out may lead to further downside testing of the $1.46 critical support. If this level fails, the descending wedge structure could extend lower, delaying any bullish recovery. The RSI remains neutral, but a sudden shift in momentum could confirm an impending reversal.

Key Levels to Watch