CVX token, the native cryptocurrency of Convex Finance, witnessed a remarkable 20% increase within 24 hours, following an unexpected surge believed to be triggered by a substantial bid from a major investor.
SpotOnChain reported that a profitable whale in the CVX market placed a bid worth $2 million (equivalent to 709961 CVX tokens), leading to a significant price spike of 61% just a few hours later.
According to an update from an analytics firm, the same whale had conducted a previous trade between July 2021 and March 2022, selling 1.098 million CVX tokens and making a profit of $20.2 million, which signifies a 129% return on investment for the initial trade.
Interestingly, this recent trade marked the whale’s second activity in two years, indicating a promising potential for further growth in CVX value.
What lies ahead for CVX cryptocurrency?
When analyzing the charts, it is evident that CVX formed a descending wedge pattern based on its price movement since 2024. The sudden breakout rally of over 80% could just be the beginning for CVX.
Historically, breakouts from such patterns have a tendency to reach levels similar to the height of the wedge, suggesting a possible price target of $5. This would imply a remarkable 134% surge in the token’s value.
Looking at it from a different angle, a retracement towards the fair value gap (FVG) due to price imbalances could offer a lucrative buying opportunity, especially if CVX aims for the $5 mark.
Despite the current overheated price momentum as indicated by the Stochastic RSI, any future dips might present an attractive bid for potential growth.
It is essential to note that a return to the wedge pattern’s boundaries could potentially alter the optimistic outlook for CVX.
Spot market demand leads the way
The recent surge in CVX price was largely fueled by spot market demand, as highlighted by the Cumulative Volume Delta (CVD) Spot chart. CVD measures the contrast between buying and selling volumes on various exchanges.
During the price surge, the noticeable spike in CVD for spot trading versus Futures indicated that the buying pressure from spot markets exceeded the selling pressure.
However, current market data suggests a dominance of short sellers, as depicted by the downward trend in CVDs. Nonetheless, the bulls’ ability to defend the breakout level within the wedge pattern could signal a potential bullish trend reversal in the future.