Conflux price gained bullish momentum after forming support at $0.2465 level and did a breakout above $0.2840 level. The major bullish rally for CFX price started after the formation of the golden cross on February 16. The price gains approximately 853% from the low of $0.05 level. The yearly high was created at $0.4876.
Conflux Price attempted to retest the highs several times but was not able to cross the $0.4360. The price then formed a downward channel forming lower lows and lower highs which was not sustainable for the price.
Recently, the price broke the channel to rise upward as the bulls entered the market preventing further downfall. If the bulls are able to push the price above the resistance level of $0.3380, there is a higher probability that the CFX price might again retest the yearly highs.
While on the other hand, if there is a break of the $0.2465 support level, there is a clean move for the price to reach the $0.14 level causing a downfall of 43%. Bulls need to stay above $0.2840 level to continue the bullish trend. The current candle has turned bearish, which could either be a retest or the price might fall below the $0.2840 level.
China Telecom partners with Conflux Network
Conflux Network collaborated with China Telecom to create and unveiled the world’s first blockchain-based sim card. The sim card will have larger storage space and computing power.
BSIM card is able to generate and store user public and private keys within itself. It will also provide security and reduce the risk of malware and virus software attacks on users. It will be used in Hong Kong first before China allows its use anywhere.
Will CFX Price Retest Yearly Highs?
Chaikin money flow is 0.04, indicating a neutral environment in the market facing the same pressure from bulls as well as bears. The Relative strength index trades at 49.71 also indicates a neutral market.
RSI did almost touch the oversold zone and bounced back to the current level after the price gained bullish strength. CFX price is in the initial phase of breakout and needs to rise above $0.3380 for more confirmation.
Price has crossed the 20-day SMA of Bollinger and shows the higher possibility of price reaching the upper band. The longs/shorts ratio is 0.92 with 48% longs and 52% shorts, indicating increasing bearish pressure on the price. Previously the longs were 51.38% which have fallen to 48% today.
Conclusion:
The Year To Date return of Conflux is 1264.55% and is one of the top gainers in the crypto market. The market structure and price action show that the CFX price is in the initial stage of breakout and needs to stay above the $0.2840 level.
Technical levels:
Major support: $0.2840 and $0.2465
Major resistance: $0.3380 and $0.4360
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/17/conflux-price-prediction-cfx-price-escapes-from-downward-channel/