- Conflux (CFX) is showing extreme bullish momentum on the daily technical chart.
- CFX price surged by almost 9% in the last 24 hours, suggesting bulls presence.
Conflux (CFX) is showing extremely bullish signs, and the technical indicators look like this altcoin is about to go on a bullish move, likely starting a strong rally phase. The altcoin is up by 9% as per CoinMarketCap data, as daily trading volume has soared by a whopping 110% suggesting a massive influx of institutional and retail interest in this altcoin.
The price action shows a powerful breakout setting up after months of consolidation. CFX has been trading within a tight range between $0.08 to $0.12 for months, but recently broke out with huge buying volume. Now, the price is in the vicinity of $0.2000, and it is important to realize that it has broken out of the significant resistance phase it was in before the current price run-up up starting around February until July.
There is more confirmation of this bullish thesis from looking at moving averages. The 50-day EMA crossed above the 200-day EMA, which is considered by technical analysts to be a “golden cross.” A golden cross typically provides a bullish sentiment to the market and indicates the potential beginning of a new uptrend. The price action is currently trading well above both the 50 and 200-day EMAs, indicative of bullish momentum that just recently started.
What Next For Conflux (CFX) Price?
Source: Tradingview
The RSI indicator shows constructive momentum at 70.56, while the price is getting close to the extreme overbought levels. Price is not currently at an extreme level that would indicate an immediate reversal, giving it plenty of room to push higher before facing significant technical resistance. The MACD histogram shows strong positive momentum, and the MACD line just crossed above the signal line, further supporting our bullish outlook.
Volume analysis validates the breakout, with total trading volume soaring 110%. Not only is this an increase in validation that the breakout is legitimate and not low-volume manipulation, but this is also a likely indication of more institutional accumulation, as well as steadily growing retail appetite for CFX.
Moreover, the next major resistance level seems situated at $0.25, which is in line with the previous highs. If CFX maintain momentum and stays above the $0.15 support zone, then it can demonstrate a bullish rally toward the higher targets. Considering the technical breakout, positioning of moving averages, explosive volume, and retail engagement, there appears to be a strong case for sustained bullish momentum in the short term.
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