Conflux (CFX) experienced a big pump of over 40% in a single day, and today (30th) it has retraced to 0.1984 USD during the Asian session, as the positive news for offshore RMB stablecoin quickly cools down. However, analysts state that CFX remains above the weekly level, and if long positions can withstand the short-term pullback, it may challenge 0.60 USD in the future.
According to reports, Conflux is about to undergo an upgrade that will open up a stablecoin pegged to the offshore Chinese yuan, thus its development momentum is very rapid. A company supported by Shanghai is driving this development, and the network’s target is a TPS of about 15K.
Therefore, CFX may gain more attention, especially in the Asian market, which is gradually embracing the cryptocurrency space. So, what will the price trend be next?
Conflux target price 0.60 USD
Looking at the weekly chart, the price trend of CFX is very strong. This strong momentum is a continuation of the upward trend over the past two weeks.
Technical analysis shows that the CFX price closed above the 200 MA at $0.16, confirming this shift.
CFX once broke through the key resistance level of 0.25 USD. If the trend can be maintained, it is expected to break through 0.60 USD, and the chart shows no resistance in the near term.
In addition, the trend strength index is 0.68, providing more alignment for achieving the goal. This indicator has seen a change in sentiment since -0.82 at the end of April, but turned positive in July.
Alternatively, if CFX fails to maintain above $0.25 (price gapped up), it may be restricted below this range. However, the overall trend of the CFX price is bullish.
(Source: Trading View)
CFX Retail Investor Stacking
As CFX breaks higher levels, retail investors have taken notice of the recent trends of this altcoin. According to data from CryptoQuant, trading frequency at the price level of $0.15 has reached the threshold of “retail investors overexposed”, and the scale of the bubble is also continuously expanding.
This is reflected in both the spot and futures markets.
At the same time, the spot and futures markets show that the beneficiaries of the CVD have been dominated by sellers, so a short squeeze may be imminent.
Previously, traders expected that after a continuous rise that seems unlikely to stop, the price would drop.
These short squeezes may drive prices up to new levels. In addition, both derivatives and spot positions are overheated, confirming the scale of trading volume.
That being said, if the short positions exceed the long positions, CFX may be forced to conduct a short-term sell-off. The upgrade allowing the issuance of stablecoins may also bring more liquidity to the market.
It can prevent these short positions from changing their course of action, potentially accelerating the trend towards $0.60 and above.
(Source: CryptoQuant)
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