Traders speculate on Convex Finances price surge of 100 leading to potential downfall
The value of Convex Finance’s cryptocurrency, CVX, has experienced a significant surge in the last day, prompting traders to speculate on a potential decline.
CVX has skyrocketed by 100% in the past 24 hours, reaching a price of $4.28 at the time of this report. This price level has not been seen since late March when the overall cryptocurrency market enjoyed a brief period of bullish activity.
The market cap of CVX has also seen a dramatic increase, now standing at $415 million, making it the 155th largest digital currency. Daily trading volume has surged by 2,800%, surpassing the $150 million mark.
Data indicates that the total value locked (TVL) in Convex Finance’s decentralized finance (defi) protocol has risen by 1% in the last day, currently sitting at $1.31 billion.
Convex Finance offers liquidity providers on Curve Finance the opportunity to stake tokens on the platform and receive a portion of trading fees in cvxCRV tokens without having to provide liquidity on Curve Finance.
According to data from Santiment, the total open interest in CVX has increased by 151% in the past 24 hours, suggesting that traders are looking to capitalize on the asset’s sudden movements and resulting price volatility.
Market intelligence data reveals that the total funding rate for CVX has dropped from 0.01% to negative 0.17% in the last day, indicating that traders are anticipating a decline in CVX’s price.
Santiment’s data also shows that the CVX relative strength index (RSI) has surged from 34 to 70 in the past 24 hours, signaling that CVX is currently overbought and may be subject to manipulation by large investors.
Given the sudden rise in open interest and RSI, CVX is currently considered a highly volatile asset.
For more information on the latest developments in the blockchain industry, be sure to check out the recent funding rounds that have seen blockchain startups secure a total of $109.3 million in investment.
