Metrics derived from social media indicate that the current CFX price increase is supported by a positive attitude among retail investors.
Conflux Network (CFX) is up about 500% in the last week, making it one of the best-performing cryptocurrencies in 2023 as China looks to embrace cryptocurrency trade.
In China, Conflux Network, also known as the Shanghai Tree-Graph Blockchain Research Institute, is the first publicly accessible, permissionless blockchain that complies with all applicable regulations. Conflux is a layer-1 blockchain that uses a proof-of-work and proof-of-stake hybrid consensus process.
As of February 24, CFX’s price has increased approximately 1,335% year-to-date (YTD) to $0.3254, its highest level in 14 months. Comparatively, the total market capitalization of crypto assets has increased by nearly 45 percent year-to-date.
In 2023, the increase in the CFX price may be attributed largely to solid fundamentals. CFX’s price surged by more than 90 percent on January 26, two days after Conflux Network formed a partnership with Little Red Book, a China-based social media platform, to supply nonfungible token services.
The arrangement allowed Conflux Network to provide its services to the 200 million users of Little Red Book.
Similarly, Conflux Network teamed with China Telecom on February 15 to build and launch a blockchain SIM (BSIM) card service in Hong Kong, therefore obtaining access to China Telecom’s 350 million subscribers. The price of CFX has increased by 450% since the announcement.
The high-profile acquisitions also increased searches for Conflux Network-related terms, indicating a rise in retail interest. For example, the global Google Trend score for the phrase “Conflux Network” hit 93 and 100 during the 22-28 and 12-18 of January and February, respectively.
According to the statistics from Santiment shown below, social media was mostly focused on the key partnership transactions of Conflux Network.
In addition, this week’s bull run on the CFX market before the vote on its token burn plan. The hype around Conflux Network is now tangible. But, this does not protect the CFX price from a significant fall in the coming weeks.
From a technical perspective, CFX is significantly overbought due to its continued price increase. On both daily and weekly charts, CFX’s relative strength index has above 70, indicating that its current uptrend is nearing its conclusion. In addition, the Conflux Network token is testing the $0.28–$0.41 area, which provided support from May to November 2021, as resistance.
As a key downside objective, a retreat from the resistance zone may cause CFX’s price to fall to $0.097–$0.141. The range also corresponded with the 50-week exponential moving average (50-week EMA; the red wave) of the token about $0.108, which is almost 65% below the current price.
In contrast, a direct violation over the $0.28–$0.41 zone might propel CFX’s price above $0.84, the session’s barrier from May to September 2021.
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