CVX Technical Analysis: Support Trendline Fallout Teases 12% Drop
Table of contents
Key Technical Points:
Past Performance of CVX
As warned in our previous analysis, the CVX prices reverse from the supply zone at $8 to break below the support trendline. In addition, the overnight drop of 4.96% in Convex Finance prices resulted in a candle closing below the support trendline. However, the lack of follow-through of the breakout candle projects the possibility of a bullish reversal from the 100-day SMA.
Source - Tradingview
CVX Technical Analysis
The CVX technical chart displays the market price ready to reach the lower support of the 50-day SMA slightly above the $6 mark. Hence, traders can find multiple short-term selling opportunities at the current market price. As the Convex Finance market price falls, the possibility of a drop to the 50-day SMA increases due to the lack of any intermediate support level.
The daily-RSI slope moves slightly above the halfway line but remains below the 14-day average line. Hence the technical indicators display a growing bearish influence over the price trend.
Moreover, the MACD indicator displays an increase in the bearish spread between the MACD and signal lines continuing a declining trend to reach the zero line.
In a nutshell, the CVX technical analysis supports the short-term selling strategy as the fallout rally may shortly gain momentum.
Upcoming Trend
The CVX technical analysis forecasts a downtrend to the 50-day SMA, close to the $6 mark accounting for a 12% drop.
Resistance Levels: $8 and $10
Support Levels: $6 and $5