Conflux (CFX) price saw huge gains last week and broke into the top 100 ranking of cryptocurrencies by market capitalization. Despite a price increase of more than 300% in the previous seven days, the rally of this altcoin does not seem to be over yet.
According to CoinGecko data, Conflux is today ranked 81st in the ranking of cryptocurrencies with the largest market capitalization. Just a week ago, on Feb. 13, its market cap was just $114 million – it reached $484 million today. Meanwhile, CFX trading volume has increased nearly 58x from $8.6 million to $497 million.
What is Conflux?
Conflux is a high throughput first layer consensus blockchain. It uses a unique Tree-Graph consensus algorithm. It enables parallel processing of blocks and transactions to increase throughput and scalability.
The project is a public, permissionless blockchain. In addition, it remains compliant with China’s cryptocurrency sector regulations. Conflux provides tools for Asian projects, connecting decentralized economies to strengthen the global DeFi ecosystem.
Last week, Conflux signed a deal with China Telecom to bring blockchain SIMs to the market. This will dramatically lower the barrier to entry to Web3 for China Telecom’s 390+ million mobile phone subscribers, while making transactions faster and more secure. By making telecom users’ personal digital assets more secure, the goal is to make mobile phones more secure.
The project’s native token is CFX. It allows token holders to pay transaction fees, earn rewards through staking, rent storage and participate in network governance. CFX also incentivizes and rewards miners who keep the network running safely.
Conflux (CFX) soars 316%
Conflux price surged 316% in the previous week. The CFX price opened at $0.054 and closed at $0.226. The upward movement was accompanied by a huge increase in trading volume, which reached the highest level in the trading history of this altcoin.
The increase led to a break through the resistance area at $0.200, which in the past has acted as both support and resistance (blue circles). Now this area is expected to serve as support in case of a correction.
However, last week’s gains do not seem to be over, as just today Conflux is in the process of forming another bullish candlestick. At the time of writing, the CFX price has increased by 25%, reaching $0.285.
If the upward movement continues, the next price resistance levels are at $0.42 and $0.55. Reaching the latter, would mean an increase of another 90%.
Despite the extremely overbought RSI at 88, technical indicators from the weekly time frame do not yet provide signals of the end of the upward impulse. On the contrary, the bullish re-test of the 50 area, which appeared on the RSI two weeks ago, reinforces the validity of the upward movement.
Possibility of Short-Term Correction
The daily chart of Conflux contains the possibility of a short-term correction. The CFX price today reached the 4.618 Fib external retracement level at $0.315. Usually, this area marks the maximum limit of a short-term upward impulse.
In addition, the daily RSI is in the process of generating a potential bearish divergence. If it is confirmed, we should expect a correction at least to the above-mentioned long-term support/resistance level at $0.200. If it is lost, the next support could be provided by the 0.618 Fib retracement level at $0.150.
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