KEY TAKEAWAYS
Conflux’s (CFX) price surged by over 100% on July 21.
CFX rallied after positive news regarding a mainnet upgrade.
Can CFX sustain its increase and reach a new cycle high?
The rally followed the announcement of the Conflux 3.0 mainnet upgrade, dubbed Tree-Graph.
With CFX approaching its cycle high, traders are closely monitoring the $0.440 resistance level to see if it will break.
Positive Conflux News
The Conflux Technology & Ecosystem Conference started on July 19 and concluded today.
Positive announcements were made, none bigger than the news of the Conflux 3.0 mainnet upgrade, scheduled for August.
The upgrade, called Tree-Graph, will introduce parallel processing blocks, improving the blockchain’s throughput to over 15,000 transactions per second.
Tree-Graph will also connect Conflux to the Artificial Intelligence (AI) industry by supporting on-chain invocation of AI agents.
Finally, the upgrade will improve the blockchain’s capabilities for cross-border trade and Real-World Assets (RWA).
Conflux’s price reacted positively to the news, surging by nearly 100% on July 20.
Why is CFX’s Price Up Today?
Conflux (CFX) is on a strong upward trajectory, with its price steadily climbing since early June.
In just the past four days, CFX has printed three bullish weekly candlesticks, signaling a potential trend reversal.
The move began with a slow and steady rise, but momentum picked up sharply last week.
CFX broke out of a long-term descending parallel channel, ending a downtrend that had persisted since March 2024.
Since then, the price has doubled, marking a decisive shift in sentiment.
If this rally continues, the next major hurdle is the $0.440 resistance zone, just shy of its cycle high.
Momentum indicators confirm the bullish price action.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences (orange) before the rally.
The RSI divergence is only present in the short term (dashed), while the MACD is present in the long term (solid).
Because of the positive Conflux price action and indicator readings, the coin is likely to rally to $0.44 and even break out.
New CFX Highs
Like the price action, the wave count suggests that Conflux has ended its correction and that the coin will reach new highs.
The count shows a rapid but short five-wave increase since the start of 2023.
Then, it started a nearly two-year A-B-C correction (red), ending with the June low of $0.059.
The wave count suggests that CFX has started a similarly rapid upward movement that could have the same length as the first one.
If that happens, Conflux will reach a high of $1.317. Despite a nearly 500% increase, the target will not represent a new all-time high CFX price, highlighting the severity of the decline.
Upgrade Triggers Rally
Conflux surged by 100% on July 20, spurred by the positive news about the mainnet upgrade.
Conflux’s price broke out from a long-term channel, and the coin is nearing the $0.440 resistance area.
The wave count suggests CFX can reach a high of $1.317.
