Market Overview for Convex Finance/Tether

Summary
• CVXUSDT formed a key 61.8% Fibonacci retracement level on the 5-minute chart.
• A bearish engulfing pattern emerged at 01:30 ET, coinciding with a large volume spike.
• Price remains in a descending channel, with 1.815–1.820 as a critical support cluster.
• RSI suggests oversold conditions, but volume has failed to confirm a reversal.
• Bollinger Bands have begun to contract, hinting at a potential volatility breakout.

Market Overview

Convex Finance/Tether (CVXUSDT) opened at 1.829 on 12/26 at 12:00 ET, reached a high of 1.843, a low of 1.782, and closed at 1.802 on 12/27 at 12:00 ET. Total 24-hour volume was 115,660.67, with notional turnover amounting to $199,139.90.

Structure & Formations

Price action formed a bearish engulfing pattern at 01:30 ET, where the candle opened at 1.814 and closed at 1.798 after gapping down from 1.814. This pattern emerged during a sharp drop to 1.795 and is supported by a 57% volume spike. The 1.815–1.820 zone appears to be a key support cluster, where price has repeatedly bounced on both the 5-minute and hourly charts. On the Fibonacci retracement, price found a 61.8% retracement level (from 1.782 to 1.843) near 1.805, reinforcing potential near-term support.

Volatility and Momentum

Bollinger Bands have contracted in the last 12 hours, indicating a period of low volatility may precede a breakout. RSI remains in oversold territory for most of the session, peaking at 27 before bouncing back toward 35. However, volume has not confirmed a strong reversal, suggesting caution in interpreting bullish momentum. MACD has been flat to slightly bearish, with the 12-line crossing below the 26-line in the morning session.

Volume and Turnover

Volume surged during the early hours (01:30–02:30 ET), during which price fell from 1.814 to 1.813 on a 17,830.588 volume candle, indicating aggressive selling pressure. However, during the late afternoon and early evening, volume has declined despite a modest rally in price, hinting at potential divergence. Turnover was highest during the 02:15–02:30 ET window, with a single candle contributing over 49,000 in volume and 49,351 in turnover, the largest single candle of the session.

Price may test 1.782 support in the next 24 hours, with a potential bounce or breakdown possible. Traders should watch for a reversal candle with strong volume near 1.815 as a potential short-term bottom signal. As always, sudden liquidity shifts or large whale activity could disrupt expected patterns.