Yei Finance’s newly launched Clovis Token (CLO) is up more than 400% since its debut. Trading activity remains strong on many exchanges, although the CLO price has retreated slightly after the initial rise.
This short-term slowdown for the DeFi token looks more like profit taking than a trend reversal. Key on-chain signals and technical signals across multiple time frames suggest that sellers may be losing control, paving the way for another move higher – if CLO can defend one crucial price level.
Sponsored
Sponsored
Fading selling pressure across major indices
The Chaikin Money Flow (CMF) – an index that tracks how much money is going in or out of large portfolios – fell below zero, reflecting moderate profit-taking by large holders (presumably their airdrop stocks). It is now located near -0.09, which indicates that outflows still outpace inflows but not by much. If the CMF settles above -0.20, it will indicate that the main selling phase has likely subsided.
Want more symbolic insights like this? Sign up for Editor Harsh Notariya’s daily newsletter here.
Wyckoff volume, which highlights shifts in buying and selling momentum through color-coded bars, turned yellow a few sessions ago, underscoring the dominance of short-term selling. However, those yellow bars are starting to shrink, indicating that the strength of this selling wave is quickly fading.
Meanwhile, the Relative Strength Index (RSI) – a gauge that measures the balance between buying and selling – is now showing hidden bullish divergence. While the CLO price formed a higher low, the RSI fell to a lower low, which often indicates that the downward momentum is weakening.
Sponsored
Sponsored
These readings come from the 15-minute chart, which captures early sentiment shifts before they appear on longer time frames. Together they indicate that the correction phase is losing steam, although confirmation still depends on how the CLO reacts around the next breakout point, which is highlighted in the CLO’s next price action.
$0.97 appears as the CLO price breakout level, but downside risks loom
On the 1-hour chart, CLO is trading within an ascending channel, indicating steady accumulation. The token is currently trading near $0.67, but this structure is only sustainable if it remains above its base near $0.64. Losing this level could lead to a short-term decline of about 5%, while a decline towards $0.54 would imply a 20% correction, and a deeper slide to $0.30 to $0.40 could represent a decline of 40% to 55% from current levels.
If CLO instead breaks the $0.97 level, which also corresponds to the 0.618 Fibonacci retracement of the last swing. After the breakout, CLO price may attempt to target a 170% price upside, as determined by the target projection within the channel.
This type of move after the breakout could move towards $1.06 (58% off current levels), $1.50 (124% higher), and even $2.03 (203% higher). This breakout will also confirm that buyers have regained full control after pausing earlier in the day.
Due to the newness and volatility of the token, patterns and price targets can change quickly. However, if $0.97 breaks and $0.64 holds, Clovis (CLO) could be poised for another strong rally — even with a 40% downside risk.