Conflux Sees 9% Increase on AI Gaming Partnership – Is $0.093 Next?

Conflux (CFX) is showing renewed interest after a partnership announcement with PlaysOut to develop AI gaming solutions, resulting in a price surge. However, uncertainties remain as profit-taking activities resurface among traders.

Key Takeaways

After a recent decline to around $0.06, Conflux has rebounded, currently trading at $0.072, marking an 8.7% increase.
A new partnership with PlaysOut aims to enhance AI-driven gaming and blockchain interoperability.
Trading activity rose significantly, especially on Binance, with buyers rapidly entering the market.
Signs of profit-taking have emerged, suggesting potential challenges ahead for Conflux’s price.

Conflux, CFX

Conflux's Price Movement and Market Activity

Following a rejection at $0.146 nearly a month prior, Conflux has been trading in a downward trajectory, reaching a local low of approximately $0.06. Recently, after a period of continued weakness, the token attempted to recover, peaking briefly at $0.078 before again retreating. As of the latest updates, Conflux [CFX] was trading at $0.072, reflecting an 8.7% increase on the daily charts. Trading volume saw a sharp increase, soaring 358% to $58 million, while market capitalization approached $400 million. This price surge indicated a renewal of interest from short-term traders, despite the market structure still appearing delicate.

Partnership with PlaysOut Boosts Market Sentiment

In a notable development for Conflux, the announcement of a partnership with PlaysOut aims to delve into AI-driven gaming and enhance cross-chain interoperability. The collaboration is set to focus on building scalable blockchain infrastructure, AI-assisted engagement tools, and innovative gaming applications. They also plan to implement mini-game experiences within Conflux’s Layer 1 ecosystem and emphasize transitioning Web2 users to Web3, alongside efforts to expand into new regional markets. This partnership served as a significant catalyst, sparking a surge of speculative buying in various spot markets.

Binance Buyers Lead Spot Market Activity

Interest in Conflux surged after the partnership announcement with PlaysOut, leading to increased demand for CFX on Binance. The data from Coinalyze indicated a buying frenzy, with Buy Volume reaching 74.83 million, surpassing Sell Volume of 67 million between December 24 and 25. As a result, the market recorded a positive Buy Sell Delta of 7.8 million, signaling aggressive buying activity. Importantly, this demand was not limited to Binance alone, with buy orders climbing across the broader spot market. Spot Taker CVD data from CryptoQuant also revealed a peak in Buyer Dominance, reaching a weekly high, demonstrating fresh interest in the asset.

Conflux buy sell volume

Conflux spot taker CVD

Profit-Taking Becomes Apparent as Price Peaks

Despite the recent rebound, indications of profit-taking surfaced quickly. Data from CoinGlass revealed a positive Spot Netflow for the first time in almost three weeks, with net inflows hitting $1.73 million, a level last observed in August. Such positive netflows typically denote an uptrend in exchange deposits, often linked to taking profits after a price jump. Historically, similar profit-taking patterns have preceded renewed selling pressures, particularly when the overall market trend remains weak.

CFX spot netflow

Is This Just a Short-Term Surge?

Technical indicators reflected a mixed outlook for Conflux. The Relative Strength Index (RSI) made a brief foray into bullish territory, peaking at 54 before retreating to 47 at the latest check, suggesting that sellers were absorbing the recent buying activity. Additionally, the Trend Strength Index (TSI) stood negative at -11, pointing to considerable bearish pressure in the market. These conditions suggest an intense struggle between buyers and sellers, with the next price movement hinging on which group gains the upper hand. Should buyers maintain their momentum, Conflux could potentially reach $0.093. Conversely, if sellers regain control, CFX may fall back to $0.068.

In Summary

The future of Conflux remains uncertain as it grapples with both opportunities and challenges in the wake of its new partnership with PlaysOut. Increased trading activity and profit-taking signals will be key factors to watch in this evolving situation.