Market Overview for Convex Finance/Tether (CVXUSDT)

Summary
• CVXUSDT formed a bullish engulfing pattern near $1.76 after a sharp drop from $1.86.
• Price tested 20SMA and 50SMA on the 5-min chart, with RSI hitting oversold levels near 25.
• Volatility expanded significantly during the 21:30–22:00 ET range, with a high of $1.837.
• Turnover surged during the 21:30–22:30 ET window, reaching $35,020 in notional value.
• 61.8% Fibonacci retracement level at $1.798 appears to have halted a rebound attempt.

Convex Finance/Tether (CVXUSDT) opened at $1.761 (12:00 ET–1) and traded between $1.747 and $1.864 over the past 24 hours, closing at $1.761 (12:00 ET). Total volume reached 259,957.03 and notional turnover amounted to $459,236.69, with heightened activity observed between 21:30–22:30 ET.

Structure & Formations

A strong bearish divergence emerged from $1.86 to $1.755, marked by a large bearish candle on the 5-minute chart. A bullish engulfing pattern developed around $1.76 as buyers tested 20SMA and 50SMA levels, signaling potential short-term support. A doji appeared near $1.80, indicating indecision after a sharp pullback.

Moving Averages and Momentum

On the 5-minute chart, the 20SMA and 50SMA crossed in a bearish crossover, while RSI reached oversold levels below 30, suggesting possible near-term support. On the daily chart, the 50/100/200SMA remain broadly aligned, with price hovering below the 200SMA, indicating a medium-term downtrend.

Bollinger Bands and Volatility

Volatility expanded significantly between 21:30–22:00 ET, with the high of $1.837 reaching near the upper Bollinger Band. Price then contracted back into the band, forming a potential reversal setup near the 61.8% Fibonacci retracement level at $1.798.

Volume and Turnover

Volume spiked during the 21:30–22:30 ET window, with a peak of $35,020 in notional turnover during the 21:30 candle. While volume remained elevated during the afternoon, it failed to confirm further bullish momentum beyond $1.80, indicating potential bearish control.

Looking Ahead

CVXUSDT appears to be consolidating near key support at $1.76 and may face renewed bearish pressure if it fails to hold above this level. A potential test of the 50SMA and a break below the 20SMA could trigger a deeper pullback. Investors should monitor volume and RSI divergence for early signs of trend continuation.