Conflux (CFX) Volume Surges 600%: Is a New Uptrend on the Horizon or Will It Fizzle Out?

Conflux (CFX) has experienced a remarkable surge in trading volume, increasing by over 600%. As the price fluctuates between notable support and resistance levels, investors are questioning whether this trend indicates a sustained rally or if the momentum will fade.

Key Takeaways

Conflux (CFX) price rose from $0.097 to $0.1411, breaking essential resistance levels.
The market cap for CFX stands at approximately $520.97 million.
Daily trading volume jumped more than 609%, reaching around $227.16 million.
Technical indicators suggest a potential bearish trend, with selling pressure evident.
Market sentiment appears neutral, indicating uncertainty over future price movements.

Conflux (CFX) Volume Surges 600%: Is a New Uptrend on the Horizon or Will It Fizzle Out?

Conflux's Current Market Position

In the early trading hours, Conflux was valued at its lowest point of $0.097. However, propelled by positive momentum in the CFX market, the price surged to a peak of $0.1411, successfully surpassing key resistance levels ranging between $0.09710 and $0.1403. According to CoinMarketCap, the current trading price of Conflux is hovering around $0.1008.

The asset currently holds a market capitalization of $520.97 million, with an astonishing daily trading volume soaring over 609% to approximately $227.16 million. Furthermore, during a 24-hour period, there was a liquidation of Conflux amounting to $1.43 million, according to data from Coinglass.

Is Conflux Facing Further Declines?

A closer look at Conflux’s technical analysis reveals that the MACD line is situated below the signal line, pointing towards bearish momentum. This suggests that the downtrend could persist unless a significant upward movement occurs. Additionally, the Chaikin Money Flow (CMF) indicator registers at -0.59, which indicates significant selling pressure in the CFX market. The data suggests that funds may be exiting the asset, reflecting a bearish market sentiment.

CFX chart (Source:TradingView)

The 4-hour price chart for Conflux indicates a bearish trading structure, highlighted by the presence of red candlesticks. This pattern could potentially retract the price to the support level at approximately $0.1001. Continued downward movement might lead to a "death cross," a bearish indicator, pushing the price further down toward the $0.09994 region.

On the other hand, if a bullish reversal takes place, the price could rise to meet immediate resistance at $0.1015. A sustained upward correction may enable a “golden cross,” suggesting a bullish trend, which could push the asset price up to around $0.1022 or even higher.

Currently, the daily Relative Strength Index (RSI) for CFX is at 50.55, indicating a neutral market state—neither overly bought nor oversold. This implies that the market is balanced, with the forthcoming moves heavily reliant on prevailing market momentum. The Bollinger Band Percentage (BBP) reading of -0.0008 suggests that bearish pressure marginally eclipses bullish strength. The market stands in a near-neutral position, indicating a slight sentiment shift that could influence future price direction.

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