Market Overview for Convex Finance/Tether (CVXUSDT): Volatile 24-Hour Downtrend

Summary
• Price formed a bearish engulfing pattern around 1.737–1.740 before plunging 4.6% by 12:00 ET.
• Volatility spiked as Bollinger Bands widened during a sharp drop below 1.716.
• Volume surged over 23,000 CVX in the final hour, but turnover failed to confirm strength.
• RSI plunged into oversold territory below 28, suggesting potential near-term bounce.
• 50-period MA on 5-min chart acted as dynamic resistance during pullbacks.

Market Overview

Convex Finance/Tether (CVXUSDT) opened at 1.725 on 2025-12-20 12:00 ET, reached a high of 1.744, and fell to a low of 1.669 before closing at 1.699 at 12:00 ET on 2025-12-21. Total volume amounted to 236,839.91 CVX, with a notional turnover of approximately 402,000 USD equivalent.

Structure and Candlestick Formations

A strong bearish engulfing pattern emerged around 1.737–1.740 as the market reversed from a short-lived high, confirming bearish sentiment. This was followed by a rapid descent below 1.716, where a long bearish candle with a small body indicated capitulation.

Multiple doji near 1.724–1.725 hinted at indecision during consolidation, but buyers failed to hold the 1.730 level.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 5-min chart acted as resistance during rebounds, limiting upside attempts. The 50-period MA on the daily chart remains above current levels, suggesting medium-term bearish bias. The MACD turned negative mid-day, aligning with the drop, while RSI hit an intraday low of 23.2, pointing to potential short-term bounce.

Volatility and Bollinger Bands

Bollinger Bands expanded significantly during the selloff, with price reaching the lower band at 1.669. Volatility was elevated for much of the session, particularly during the late-night sell-off. This expansion often precedes a consolidation phase, and the current price sits just above the 1.700 psychological level.

Volume and Turnover Divergence

Volume spiked above 23,000 CVX in the final hour as price fell to 1.669, but notional turnover did not rise proportionately, hinting at potentially low conviction in the move. This divergence could suggest a short-term bottom is in place, but further confirmation is needed before assuming a reversal.

Fibonacci and Key Levels

Price found temporary support at the 61.8% Fibonacci retracement level of the 1.725–1.744 rally, near 1.728, but failed to hold it. On the daily chart, the 38.2% retracement of the recent major bear move sits at 1.729, which may offer some short-term resistance if buyers re-enter the market.

The market may find near-term support near 1.680–1.690, with a potential test of the 1.720 level if a reversal gains traction. However, a sustained break below 1.669 or a failure to reclaim 1.730 could indicate further bearish momentum. Investors should remain cautious of increased volatility and possible short-term swings in the next 24 hours.