Convex Finance (CVX) Price Poised For 25% Gains Next Week?

The crypto market is heading for a recovery, with BTC again nearing the $60K mark and Ethereum claiming $2600. Conversely, Convex Finance failed to rise parallelly and has been stuck near the demand zone. 

The CVX price experienced a strong downturn in tandem with the broader market crash. The price suffered a strong selloff from the $3.5 level. When writing, the token price hovered 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 to the possibility of price recovery in crypto. Also, the CVX cryptocurrency was near a strong demand zone and the $2 psychological 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. 

The positive divergence started 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 participating in a transaction intraday. It is evident from the chart that the 24-hour active address curve was 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 lagging 28% from the 200-day EMAs suggested a bearish trend prevailing in the long term. 

Moreover, the daily chart highlighted the formation of a descending triangle pattern with the price currently consolidating near the demand zone of $2 level. The consolidation comprises the $2 level as support and the $2.6 level as resistance. 

Suppose the 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 the trendline close to $3.25, indicating a nearly 25% potential on the higher side. 

When writing, the RSI line was placed at 44.3 points, and 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. 

CVX Price Assessment

Convex Finance (CVX) was 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. 

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.

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