Convex Finance price rallies 100%, traders bet on its downfall

Convex Finance (CVX) price has made an impressive rise in the past day. Now traders are betting on the decline.

CVX is up 100% in the last 24 hours and is trading at $4.28 at the time of writing. This price level was last seen in late March, when the broader cryptocurrency market recorded a short-term bull run.

CVX price, RSI, open interest and funding rate – June 17 | Source: Santiment

Moreover, CVX’s market cap rose to $415 million, making it the 155th largest digital currency. The asset’s daily trading volume increased by 2,800% to $150 million.

Data shows that the total value locked (TVL) on the Convex Finance decentralized finance (defi) protocol increased by 1% in the past day and currently stands at $1.31 billion.

Convex Finance allows liquidity providers on Curve Finance to stake tokens on the platform and receive a share of transaction fees on cvxCRV tokens without putting liquidity into Curve Finance.

According to data provided by Santiment, total open interest on CVX increased by 151% in the last 24 hours. This shows that investors are trying to make short-term profits from sudden movements of the asset, thus bringing about high price volatility.

Data from the market intelligence platform shows that the total funding rate raised by CVX dropped from 0.01% to minus 0.17% in the past day. The chart shows that investors are currently betting that CVX’s price will fall at this point.

According to Santiment, the CVX relative strength index (RSI) increased from 34 to 70 in the last 24 hours. The indicator shows that CVX is overbought and whale manipulation may be involved.

CVX is currently a highly volatile asset due to spikes in open interest and RSI.