Conflux’s Bullish Momentum
Since Monday, Conflux (CFX) has exhibited a robust bullish daily structure. This resurgence is particularly noteworthy given the heightened trading volume, which suggests that the breakout could potentially reach resistance levels observed in May.
Conflux had been oscillating within a defined range since late June. Despite facing potential breakdowns in early July and August, the bulls have managed to stage a significant comeback, achieving a remarkable 33% gain within just four days. This resurgence has been pivotal in altering the market sentiment around CFX.
Breaking Through Resistance
The recent breakout past the three-month resistance at $0.176 is a critical milestone. This move indicates that surpassing the $0.2 mark is not just possible but likely imminent. The previous sideways trend has been disrupted, and the bulls are now eyeing a substantial 40% upward movement.
In the context of a multi-month consolidation phase following a downtrend, such patterns are typical for assets recovering from a bear market. This range formation has provided long-term investors with lucrative buying opportunities, albeit requiring them to withstand short-term volatility. The breakout past $0.176 was accompanied by relatively high trading volume, reinforcing the bullish outlook.
Indicators of a Strong Uptrend
Several technical indicators support the bullish sentiment. The Directional Movement Index (DMI) shows a strong uptrend, with the +DI well above 20. As the Average Directional Index (ADX) climbs higher, it signals a strengthening trend, which is a positive sign for buyers.
Additionally, the Awesome Oscillator has crossed above the neutral zero line, further confirming the bullish momentum. Typically, a range formation like this rallies at least the width of the range, suggesting a conservative target for CFX bulls at the $0.242 level. This target aligns with the resistance observed in May, with further resistance at $0.265 from April.
Short-Term Bullish Sentiment
On September 23rd, the Open Interest on CFX contracts peaked at $20.9 million. Over the subsequent four days, this figure surged to $45 million, indicating growing investor interest and confidence. Despite a significant decline in the spot Cumulative Volume Delta (CVD) a few days ago, it has since recovered, alleviating concerns among bullish traders.
The funding rate has also remained high, collectively signaling a bullish short-term outlook for Conflux. A further 30%-40% upward movement appears likely, although achieving this may require additional time and sustained buying pressure.
Conclusion
In conclusion, Conflux (CFX) has demonstrated a strong bullish structure since Monday, supported by increased trading volume and positive technical indicators. The breakout past the $0.176 resistance level suggests that a move beyond $0.2 is imminent, with potential targets at $0.242 and $0.265. While short-term volatility remains a factor, the overall outlook for CFX is bullish, with significant gains likely in the near future. Investors should remain vigilant and consider the potential for further upward movement, balanced against the inherent risks of market fluctuations.
