February 2023 brought a correction phase in the majority of major cryptocurrencies. As a result, the Convex Finance coin turned down from the $7.1 resistance and tumbled 23.75% down to reach $5.5 support. However, this correction phase with a series of lower highs and lower lows is part of a well-known bullish continuation pattern called the ‘flag pattern’.
Key Points
- The Convex finance coin will continue its correction up till the flag pattern is intact
- The pattern’s resistance trendline breakout may set CVX price of a 28% jump
- The intraday trading volume in the Convex Finance Token is $12.3 Million, indicating a 45.2% gain
Source- Tradingview.
In theory, the flag pattern formation is a small break in an ongoing bullish trend, trying to recuperate the bullish momentum. After witnessing an aggressive rally in January, the February correction may replenish the bullish momentum in CRV price.
Today, the coin price witnessed a significant inflow and tried to breach the pattern’s resistance trendline. However, the higher price rejection attached to the daily candle indicates the sellers continue to defend the pattern’s resistance trendline.
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Therefore, if the selling pressure persists, the coin price may revert from the above trendline.
However, concerning the higher possibility, the CVX price is bound to beat the overhead trendline. This breakout may offer entry opportunities to interested traders and signal the resumption of prior recovery.
The potential price rally may drive the Convex Finance Coin price to the $10.5 mark
Technical Analysis
RSI: The daily RSI slope managed to hold above the midline despite the correction phase indicating the underlying bullish momentum is strong
Bollinger band: the CVX coin back above the midline indicates the buyers still possess an upper hand.
Curve Finance coin intraday price levels
- Spot price: $6.14
- Trend: Bullish
- Volatility: Medium
- Resistance levels- $6.8 and 7.9
- Support levels- $4.4 and $3.7
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from CoinGape