Market Overview for Convex Finance/Tether (CVXUSDT)

Summary
• Price surged to 1.869 before consolidating, suggesting a potential breakout near key resistance.
• RSI reached overbought territory, indicating potential near-term profit-taking.
• Volume spiked during the early AM ET rally, confirming bullish momentum.
• Bollinger Bands show recent contraction, signaling a potential period of higher volatility.
• A large bullish engulfing pattern formed in early ET hours, hinting at renewed buying pressure.

Convex Finance/Tether (CVXUSDT) opened at 1.764 on 2025-12-07 at 12:00 ET, surged to 1.869, and closed at 1.838 on 2025-12-08 at 12:00 ET. The 24-hour volume was 427,849.55 units, and the turnover reached $779,217.18.

Structure & Formations

The price formed a large bullish engulfing candle on the 5-minute chart around 21:45 ET, followed by a sharp rally that pushed above a previous high of 1.869. A bearish correction emerged after 1:30 AM ET, with price consolidating around 1.82–1.84. Key resistance appears near 1.86–1.87, with 1.82–1.83 acting as a strong support cluster. A hanging man candle formed around 22:45 ET, suggesting possible bearish pressure, but was followed by a sharp rebound.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages trended upward during the morning and early afternoon ET, confirming the bullish bias. The price closed above both. The daily chart showed the 50-period MA at 1.81 and 200-period MA at 1.77, indicating a longer-term bullish bias.

MACD & RSI

The MACD remained positive for most of the session, peaking in the early morning ET before tapering off. RSI crossed into overbought territory during the 1:30–2:30 AM ET rally and remained elevated, suggesting a potential pullback. A bearish divergence began to form between price and RSI in the late morning, signaling possible near-term profit-taking.

Bollinger Bands

Volatility remained elevated during the early part of the session, with price trading near the upper band before settling closer to the mid-band. Price may retest the upper band in the coming hours.

Volume & Turnover

Volume spiked significantly during the 1:30–2:30 AM ET rally, with over 42,000 units traded in that period. Turnover mirrored this with a large spike during the same window, confirming the bullish momentum. Divergences between volume and price were minimal, with volume increasing during most price advances.

Fibonacci Retracements

On the 5-minute chart, price pulled back to the 61.8% Fibonacci retracement level of the morning rally (1.82–1.85) before rebounding, indicating strong support in that range. On the daily chart, the 38.2% level at 1.81 appears critical, as a break below could trigger further downside.

The market appears to be consolidating after a sharp intraday rally, with bulls and bears in a tug-of-war near 1.82–1.84. A decisive break above 1.85 could signal renewed bullish momentum. Investors should remain cautious of overbought conditions and possible profit-taking in the next 24 hours.