Conflux Network (CFX) is up practically 500% prior to now week, with CFX rising as one of many best-performing crypto belongings in 2023 as China seems to be warming to cryptocurrency buying and selling.
What is Conflux Network?
Interestingly, Conflux Network, also called Shanghai Tree-Graph Blockchain Research Institute, is the one regulatory-compliant, public and permissionless blockchain in China. Conflux is a layer-1 blockchain working on a hybrid proof-of-work and proof-of-stake mechanism.
CFX’s worth has rallied practically 1,335% year-to-date (YTD) to succeed in $0.3254 as of Feb. 24, its highest stage in 14 months. In comparability, the mixed market capitalization of crypto belongings has surged roughly 45% YTD.
Why is Conflux Network’s worth rallying?
Strong fundamentals have primarily pushed the CFX worth larger in 2023.
For occasion, CFX’s worth elevated by greater than 90% on Jan. 26, two days after Conflux Network partnered with Little Red Book, a China-based social media platform, to offer nonfungible token companies.
The partnership enabled Conflux Network to carry its companies to Little Red Book’s 200 million customers.
Similarly, on Feb. 15, Conflux Network partnered with China Telecom to develop and pilot a blockchain SIM (BSIM) card service in Hong Kong, thus gaining publicity to the latter’s 350 million customers. CFX’s worth has rallied 450% after the announcement.
The high-profile offers additionally helped increase queries for key phrases associated to Conflux Network, thus hinting at an rising retail curiosity. For occasion, the worldwide Google Trend rating for the key phrase “Conflux Network” reached 93 and 100 within the Jan. 22–28 and the Feb. 12–18 durations, respectively.
Social media was principally centered on Conflux Network’s main partnership offers, based on information from Santiment present under.
In addition, the CFX market bull run additionally comes forward of the vote on its token burn proposal someday this week.
ℹ️ Did the Conflux Foundation has already burned near 500 Million CFX?!
‼️ Our newest DAO proposal vote CIP-107 concerning token burning will likely be happening subsequent week!
Read the complete proposal right here ⬇️https://t.co/zqZwmXUSWn pic.twitter.com/1odqgJEbOh
— Conflux Network Official (@Conflux_Network) February 14, 2023
So far, the excitement for Conflux Network is palpable. However, that doesn’t safeguard CFX’s worth from present process an enormous correction within the coming weeks.
CFX worth rally is “overbought”
From a technical standpoint, CFX’s ongoing worth growth has left it extraordinarily overbought.
On each every day and weekly charts, CFX’s relative power index has crossed above 70, which hints that its ongoing uptrend is close to exhaustion. In addition, the Conflux Network token is testing the $0.28–$0.41 vary as resistance, which served as assist from May to November 2021.
A pullback from the resistance space might have CFX’s worth fall to $0.097–$0.141 as its main draw back goal. The vary additionally coincided with the token’s 50-week exponential shifting common (50-week EMA; the crimson wave) close to $0.108, down about 65% from present worth ranges.
Conversely, a decisive breakout above the $0.28–$0.41 vary might have CFX’s worth rally towards $0.84, its resistance from the May–September 2021 session.
This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.