Convex Finance (CVX) has experienced a prolonged downtrend since the crash at the end of July, leading to a new all-time low. The persistent losses have created a climate of wariness among investors, further fueling pessimism about the token's recovery prospects.
Investor sentiment surrounding CVX has turned overwhelmingly negative in recent months. As losses mounted over the last two months, confidence among holders began to erode. Many investors who once believed in the token’s potential recovery are now doubtful of its ability to rebound, particularly given the consistent price declines.
This growing pessimism has intensified as CVX struggles to establish a stable support level. The absence of bullish momentum and the continued downtrend have compounded concerns, leaving many holders uncertain about their investments' future.
CVX’s overall macro momentum is concerning. Historically, Convex Finance has correlated with Bitcoin, a trend that typically benefits altcoins. However, this correlation has recently signaled bearish trends for CVX. Whenever the correlation between CVX and Bitcoin improves, the altcoin experiences further price drops, contributing to CVX's decline to a new all-time low.
Over the last four days, CVX has seen a 16% drop, creating intense bearish pressure. This pushed the token to a new all-time low, with an intra-day decline of 6%, bringing CVX down to $1.72. As of now, CVX is trading slightly higher at $1.86, just above the critical support level of $1.81.
To regain momentum, CVX would need to reclaim the local support level of $1.97. However, given the current bearish sentiment and ongoing selling pressure, this may prove challenging in the near term. Without significant market changes, CVX may struggle to break above key resistance levels and could face consolidation above $1.81.
If CVX manages to bounce off the $1.97 level, it could potentially push back above $2.00. A successful breach of $2.12 would invalidate the bearish-neutral outlook and could trigger a recovery, although this remains a challenging scenario considering the token’s recent performance.
