<em><strong>The CVX price breaks below the support trendline, teasing a downtrend continuation to the 50-day SMA. Will this downtrend continue to $6?</strong></em>
<h3>Key Technical Points:</h3>
<ul>
 	<li>The Convex Finance (CVX) price dropped by almost 5% in the last 24 hours resulting in the expanding channel fallout.</li>
 	<li>The market price approaches the 50-day SMA to seek a bullish haven and attempt a reversal.</li>
 	<li>With a market cap of $462 billion, the intraday trading volume of Convex Finance has decreased by 12% over the last 24 hours to reach $9.61 million.</li>
</ul>
<h3>Past Performance of CVX</h3>
As warned in our <a href="https://www.cryptoknowmics.com/news/cvx-technical-analysis-increasing-fear-warns-downfall-to-6" target="_blank" rel="noopener">previous analysis</a>, the CVX prices reverse from the supply zone at $8 to break below the support trendline. In addition, the overnight drop of 4.96% in Convex Finance prices resulted in a candle closing below the support trendline. However, the lack of follow-through of the breakout candle projects the possibility of a bullish reversal from the 100-day SMA.

<img src="https://s3.tradingview.com/snapshots/o/okMeF7FZ.png" alt="TradingView Chart" />

Source - <a href="https://www.tradingview.com/x/okMeF7FZ/" target="_blank" rel="nofollow noopener">Tradingview</a>
<h2>CVX Technical Analysis</h2>
The CVX technical chart displays the market price ready to reach the lower support of the 50-day SMA slightly above the $6 mark. Hence, traders can find multiple short-term selling opportunities at the current market price. As the Convex Finance market price falls, the possibility of a drop to the 50-day SMA increases due to the lack of any intermediate support level.

The daily-RSI slope moves slightly above the halfway line but remains below the 14-day average line. Hence the technical indicators display a growing bearish influence over the price trend.

Moreover, the MACD indicator displays an increase in the bearish spread between the MACD and signal lines continuing a declining trend to reach the zero line.

In a nutshell, the CVX technical analysis supports the short-term selling strategy as the fallout rally may shortly gain momentum.
<h2>Upcoming Trend</h2>
The CVX technical analysis forecasts a downtrend to the 50-day SMA, close to the $6 mark accounting for a 12% drop.

Resistance Levels: $8 and $10

Support Levels: $6 and $5

CVX Technical Analysis: Support Trendline Fallout Teases 12% Drop

According to the technical analysis, the CVX price breaks below the support trendline teasing a downtrend continuation to the 50-day SMA.

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

CVX Technical Analysis: Support Trendline Fallout Teases 12% Drop

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