Convex Finance price prediction is bullish following a 70% uptick from $3.0 on January 6 to teach an intraday high of $5.11 on Monday. CVX is up 21% in the last 24 hours with a daily trading volume of $30,061,984 which is up 114% over the same time frame, suggesting increasing investor interest in the token. At the time of writing, Convex Finance has a live market cap of $345,033,395 (up 20% on the day), placing it at #95 on CoinMarketCap.
This impressive performance by CVX has been attributed to the announcement by the Decentralized Finance (DeFi) platform that it was updating its staking mechanism and reward system. The announcement was made by the blockchain company through a Twitter post giving “updated dynamics for $cvxCRV staking.”
Happy 2023 🎉! The first update of the year is here; updated dynamics for $cvxCRV staking are coming soon. More inside!https://t.co/tXey1HicjX
— Convex Finance (@ConvexFinance) January 2, 2023
The update affects CVX holders, cvxCRV holders, and liquidity providers on Curve. According to the update, cvxCRV holders will be issued with a new wrapper contract for cvxCRV staking, allowing them additional incentives. cvxCRV holders will also choose the token to be incentivized with – CRV, CVX, 3CRV, or a mix of the three.
For the CVX holders, the update will utilize the new wrapper contract to remove the old cvxCRV from circulation with a proposal to divert some of the platform fees to the cvxCRV wrapper contract. The protocol will also shift some of the existing CVX emissions to this wrapper.
For the liquidity providers on Curve, the DeFi platform plans to deploy a new Factory contract for the cvxCRV/CRV pool to take advantage of an internal price oracle and prevent price manipulation.
The Convex investors are hopeful that the positive fundamentals around its staking process will help the DeFi protocol regain competitive advantage, in turn, driving the price higher.
Convex Finance Price Analysis – Where Next CVX?
The CVX/USD pair has grown in an impressive rally from $3.0 to areas above $0.5 with the bulls determined to push the price higher. The DeFi token is trading in a sixth straight bullish session as shown on the daily chart below.
The Directional Movement Index (DMI) shows that the uptrend for the Convex Finance price is very strong. The positive directional line (+D1) at 47 is way above the negative directional line (-D1) at 9, suggesting that there are more buyers than sellers in the market.
The relative strength index was also moving upward in the overbought region, adding credence to CVX’s strong upward trajectory. The price strength at 83 reinforced the bull’s grip on Convex Finance.
Moreover, CVX was trading within a significant demand zone stretching from $4.5 to $5.2 which provided support for the altcoin when it spiked 47% between September 22 and October 12 last year.
Buyers from this demand zone will now attempt to lift the price from the current price first toward the $5.11 local high and later to the $6.0 psychological level. Rising above this level will clear the path for an attempt to get to $10, bringing the total gains to 90%.
CVX/USD Daily Chart
Also supporting Convex’s upward trajectory was the strong support the crypto enjoyed on the downside. These defense areas were embraced by the 50-day exponential moving average (EMA) at $4.1 and the 100-day EMA at $3.7.
However, the RSI was in the overbought region suggesting that the ongoing recovery may soon run out of steam as bulls get fatigued. As such, traders could expect a correction in the near future that could take the price below the immediate support at $4.5 or to the EMAs below it.
Losing support from the 50 and 100 EMAs could trigger massive sell orders that could see the drop further to tag the $3.34 support floor or the $3.0 swing low.
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