Breaking down Conflux’s 41% rally: Can THIS lead CFX to $0.60?

Key Takeaways 

Conflux price tested the weekly 200EMA at $0.1854 and closed above it. A flip of $0.25 zone would see the price hit $0.60 if CFX sustains this momentum. 

Conflux Network [CFX] jumped 41% in the past 24 hours, with volume soaring 325% to $628 million, according to CoinMarketCap.

As per the reports, Conflux was heating up from its upcoming upgrade, which opens for yuan-pegged stablecoins.

The Shanghai-backed firms were driving this development, with the network targeting about 15K in TPS.

Source: CoinMarketCap

For this reason, CFX is likely to gain more attention, particularly in the Asian market, which is gradually embracing the cryptocurrency space. So, where will the price move next?

Conflux price targets $0.60

Looking at the price action of Conflux, the weekly chart was showing a lot of strength. The strength was an extension of the rise that has been in place for the last two weeks.

Technical analysis showed that the CFX price had closed above the 200 MA at $0.16, confirming this shift.

With CFX trading at $0.26, the altcoin was above a key resistance at $0.25 and this could see it reach $0.60. The chart showed no near-term resistance.

Additionally, the Trend Strength Index was at 0.68, adding more confluence for the target to be hit. The metric changed its sentiment since the end of April when it was -0.82 but flipped to positive in July.

Source: TradingView

Alternatively, failure to stay above $0.25 where the price had gapped above, CFX could stay confined below this range. However, the overall trend of CFX price was bullish.

Retail stacking up shorts

As Conflux breaks higher levels, retail has taken notice of the altcoin’s recent moves. As per CryptoQuant, trading frequency hit the “Too Many Retail” bar at $0.15 price, with the bubbles increasing in size.

This was reflected both in spot and futures markets.

Meanwhile, a short squeeze could be on its way as the Spot and Futures market shows the taker CVD has been dominated by sellers.

This comes as traders anticipate a fall in price following that consistent rally that does not seem to stop.

A run on these shorts could fuel the price into new territories. Also, both the derivatives and spot positions were overheating, authenticating the volume size.

Source: CryptoQuant

That said, if these shorts outweigh the buys, CFX could be forced into a short-term sell. The upgrade which allows stablecoin issuance could also bring more liquidity into this market.

It could deter these shorts from changing its direction of movement, which could accelerate a move toward $0.60 and beyond.