KEY TAKEAWAYS
CFX has broken out of a bullish pennant, backed by substantial volume and a MACD golden cross.
Volume has quadrupled in 24 hours, backing the bullish thesis on the 4-hour chart.
If momentum continues, CFX price could rise toward $0.41 unless selling pressure returns.
The crypto market loves a comeback, and Conflux (CFX) seems to be delivering one. CFX, the cryptocurrency tied to the Conflux Network, has hit a new yearly high.
This is because the Conflux price increased by 255% in the last 30 days. CFX trades at $0.27 at press time, which it last reached on Dec. 7, 2024.
So, what is driving the altcoin higher, and what lies ahead for the price? Let’s find out.
Conflux Goes From Side Chain to Center Stage
Conflux’s price breakout aligns with CCN’s July 21 analysis, when the token was already up 100%. One of our lead analysts, Valdrin Tahiri, called for more upside.
Fast-forward to today: CFX price is ripping as predicted. Beyond the bullish setup, surging trading volume is helping drive CFX’s breakout.
The CFX trading volume was less than $150 million during the early trading hours yesterday. Today, the volume of the altcoin—often dubbed the “Chinese Ethereum” — has exceeded $600 million.
From a trading perspective, the rise in volume alongside the increase in the price of Conflux is bullish. This is because the volume strengthens the current trend.
So, since CFX is trading upward, the price will likely go higher if bears do not tug back the momentum.
Besides the trading volume, the daily chart shows that the Moving Average Convergence Divergence (MACD) has formed a bullish crossover. The bullish crossover happened as the shorter EMA rose above the longer EMA.
Specifically, the 12 EMA (blue) has crossed above the 26 EMA (orange). If bulls hold this position, the CFX market price might trade much higher than $0.27.
CFX Price Analysis: Bulls in Control
From a technical perspective, the 4-hour chart shows that the Conflux price has broken out of a bullish pennant.
The pennant formed after an initial strong upward move, followed by a brief consolidation between converging trendlines. That coiling action usually signals buyers gathering momentum, thereby confirming the breakout.
With volume backing the move, CFX could be gearing up for another leg higher. In addition, the Bull Bear Power (BBP) has flashed higher histogram bars. The rise in the BBP indicates bulls are in control, so the CFX price might trade higher.
As long as this remains, the Conflux price will likely surge toward $0.41 in the short term. In the long run, it could break toward $1.
However, bears might have the upper hand if the altcoin becomes overbought. In such a scenario, CFX might drop below the pennant’s lower trendline and decline to $0.14.
