Conflux had another massive surge a few hours ago. It opened trading at $0.194 and surged to a high of $0.279.
A breakdown of the chart into the 2-hour timeframe shows that the surge started early on Tuesday morning UTC. It continued upward but faced notable rejection at $0.24. The coin continued upward, breaking above its previous high around $0.246.
The chart reveals that it slowed its ascent after breaking above the mark and edged closer to $0.28 but faced massive rejection, resulting in a massive trend reversal. CFX plummeted by 18% after a failed attempt and is yet to find support as it trades at $0.21.
However, many wonder why the asset surged. A recent post from CFX3U sheds more light on the fuel for the uptrend. The user states that Conflux surged due to three key factors: tokenisation of real-world assets, building payment tools through PayFi, and launching stablecoins like the offshore RMB and HKD.
The action has caught the attention of many as China moved its support to regulated private stablecoins, replacing state-run CBDC.
The partnership Conflux formed with AnvhorX and Eastcompeace Technology to launch AxCNH, which is an offshore yuan stablecoin, has been the largest stimulant to the recent surge. Conflux is positioned as a preferred network for blockchain-based cross-border payment as it perfectly aligns with China’s updated Policy.
As maintained by the Defiant, Conflux could play an essential role in the settlement system linked to the Belt and Road Initiative.
Another catalyst for the surge surrounding CFX would be the upcoming Pilot programs for AxCNH that commence on August 1 in Malaysia and Singapore.
What Next?
The 2-hour chart reveals that CFX broke above its Bollinger band 6 hours ago. It returned below the upper band barely 2 hours ago and remains on the downtrend.
Previous price movement indicates that the asset may drop to the middle band below $0.20. A slip below $0.20 will see the coin erase more than 70% of its previous gains.
Indicators on the 4-hour chart paint a grimmer picture of how prices will play out in the coming hours. The moving average convergence divergence shows the 12 EMA on a downward trend as it approaches the 26 EMA. A complete interception will signal the start of a steeper price downtrend.
Previous price movement indicates that a slip below $0.20 could result in the asset retesting $0.18.
Conflux Eyes $0.35
Two weeks ago, Conflux printed a god candle as it gained over 135% but lost momentum and retraced. During that period, CFX surged to a high of $0.249, its highest value of 2025.
The coin surged higher a few hours ago, peaking at $0.279. It is worth noting that the fuel for both surges was the impending upgrade of the Conflux network.
A previous analysis noted that the asset would continue to see momentary uptrends in the days leading to the upgrade. It means that CFX would surge higher.
Following its rejection at $0.28, previous price movement indicates that the asset will break above $0.30 after flipping the mark. For example, it surged from $0.24 to $0.295 in the last week of February 2024. It broke above $0.30, peaking at $0.36.
A repeat of this trend will see the asset break above $0.35 in the coming days.
