Conflux Coin Price Rallied 500% In A week; Will It Go Higher?

The Conflux coin price has been rising for six consecutive days and registered a 500% growth. This perpendicular rally has breached multiple resistance and has pushed the altcoin price to its current level of $0.311. However, such a massive bull run in a short pan could be unhealthy and will be poised for a correction phase soon.

Key Points: 

• The overbought Conflux coin price is poised for a significant correction
• A rising EMAs could support coin prices during a possible correction
• The intraday trading volume in Conflux coin is $852.5 Million, indicating a 201.2% gain.

Why Conflux Coin Soaring?

It seems the massive inflow in Conflux coin is associated with its partnership with China Telecom aiming to bring Web3 technology to mobile devices through blockchain SIM cards. The blockchain SIM card will allow users to securely store their private keys and digital assets on their mobile devices, giving them full control over their assets and protecting them from theft and fraud. China Telecom, the largest telecommunications company in China, will provide the mobile network infrastructure, while Conflux Network, a public blockchain project, will provide the blockchain technology and platform for the SIM card. The blockchain SIM card will enable users to access decentralized applications (dApps) on the Conflux Network, as well as other dApps that are built on other blockchain networks. 

Also Read: Top Crypto Discord Servers/Groups Worth Joining In 2023

Price Analysis

Source- Tradingview

The Conflux coin price shows an upright growth in the daily time frame chart. This bullish rally backed by strong volume indicates a sustained recovery and high confidence from buyers. Amid this rally, the coin price has breached a long-coming monthly resistance zone of $0.297

If the daily candles close above the $0.297 mark, the buyers will obtain a strong footing to lead further. However, the coin price has witnessed an explosive rally in the last seven days and therefore, any more growth without some external news is less likely.

Moreover, the coin price may witness a minor correction to stabilize the aggressive buying. The potential pullback may revisit the recently breached resistance in hope of significant support which could replenish the bullish momentum.

The coin holders can mark the following levels of $0.25, $0.185, and $0.15 as strong support, which could assist buyers to drive the post-correction rally.

Technical Indicator

Relative Strength Index: the daily RSI slope reached high in overbought regions indicating the traders have gone overboard in buying activity in a short period. 

EMAs: A coin price movement usually closes its moving average. However, with the sudden price rise the CFX price left behind the crucial EMAs(20, 50, 100, and 200), indicating this crypto coin will need a minor correction to attain stability.

Conflux Coin Price Intraday Levels

• Spot rate: $0.3
• Trend: Extremely Bullish
• Volatility: High
• Resistance level- $0.392 and $0.5
• Support level- $0.297 and $0.255