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

The price of Convex Finance (CVX) recorded an impressive rally over the past day. Now, traders are betting on its downturn.

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

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

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

Convex Finance allows liquidity providers on Curve Finance to stake the tokens on the platform and get a share of the trading fees in cvxCRV tokens without putting the liquidity on Curve Finance.

According to data provided by Santiment, the total open interest in CVX increased by 151% in the past 24 hours. This shows that traders are trying to make short-term profits from the asset’s sudden movements, consequently, bringing high price volatility.

Data from the market intelligence platform shows that the total funding rate aggregated by CVX dropped from 0.01% to negative 0.17% over the past day. The chart shows that traders are currently betting on CVX’s price fall at this point.

Per Santiment, the CVX relative strength index (RSI) surged from 34 to 70 in the past 24 hours. The indicator shows that CVX is overbought and there could be whale manipulation in play. 

CVX is currently a highly volatile asset due to the sudden increases in its open interest and RSI.