Convex Finance (CVX): Causes Behind Its All-Time Low Crash

Convex Finance (CVX) has been on a downward trajectory since the market crash at the end of July, with its price consistently dropping each day. This extended decline has led CVX to hit a new all-time low.

The ongoing losses have made investors cautious, creating an air of pessimism regarding the token’s chances of recovery.

Convex Finance Investors Give Up

In recent months, investor sentiment surrounding CVX has turned overwhelmingly negative. With losses accumulating over the past couple of months, confidence among holders has started to wane. Investors who once had faith in the token’s potential recovery are now doubtful about its ability to rebound, particularly given the ongoing price drops.

This mounting pessimism has deepened as CVX struggles to find a stable support level. The absence of bullish trends and the token’s failure to reverse its downtrend has intensified worries, leaving many holders anxious about the future of their investments.

Read More: What Is Convex Finance (CVX)?

The overall macro momentum for CVX is concerning as well. Historically, Convex Finance has shown a correlation with Bitcoin, which usually favors altcoins. Unfortunately, this correlation has now manifested as a bearish indicator for CVX.

Whenever the relationship between CVX and Bitcoin improves, the altcoin has often seen further price declines. Currently, the increased correlation is contributing to CVX’s drop to a new all-time low.

This negative macro backdrop, combined with the strong ties to Bitcoin’s price movements, has created additional downward pressure on CVX. As the cryptocurrency battles to regain its footing, it remains susceptible to further losses unless a significant bullish sentiment returns to the market.

CVX Price Prediction: What Comes After a New Low

In the past four days, CVX has faced a 16% decline, creating significant bearish pressure. This led the token to reach a new all-time low, with an intra-day dip of 6%, bringing CVX down to $1.72. Currently, CVX is trading slightly higher at $1.86, precariously above the critical support level of $1.81.

For CVX to regain momentum, it needs to reclaim the local support level of $1.97. However, given the prevailing bearish sentiment and ongoing selling pressure, this may prove challenging in the near future. Without a substantial change in market conditions, CVX might find it difficult to surmount key resistance levels and maintain an upward trend above $1.81.

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On a brighter note, if CVX manages to bounce off the $1.97 level, it could push back above $2.00. A successful break above $2.12 would invalidate the bearish-neutral outlook and might trigger a recovery, although this remains a daunting scenario given the token’s recent performance.