Conflux $CFX Falls 15% After 91% Weekly Surge Traders Watch $0.185 Support Amid Bearish Signals

Conflux ($CFX) experienced a 15% overnight decline, marking a sharp reversal from its 91% weekly surge driven by ecosystem upgrades and international adoption. The selloff has intensified scrutiny on the $0.185 support level, as traders weigh whether the pullback signals a temporary correction or a breakdown in the token’s momentum. Technical indicators show the Relative Strength Index (RSI) nearing oversold territory, while the Moving Average Convergence Divergence (MACD) has turned bearish, adding to uncertainty about the asset’s near-term trajectory.

The recent volatility follows a 52% rally in $CFX, fueled by optimism over Conflux’s Tree-Graph 3.0 upgrade and partnerships for yuan-pegged stablecoins. The blockchain’s hybrid consensus model—combining Proof-of-Work for security with a parallelized Proof-of-Stake layer—enables up to 15,000 transactions per second, outperforming traditional Layer-1 networks. However, the rapid price ascent has prompted profit-taking, with traders exiting positions after the token briefly tested $0.248 twice before retreating.

Conflux’s fundamentals remain anchored in its ecosystem developments. The Tree-Graph 3.0 upgrade, scheduled for late July and early August 2025, introduces parallel block processing to enhance scalability, positioning the network to attract developers in DeFi, gaming, and enterprise applications. Additionally, the rollout of axCNH, an offshore yuan-pegged stablecoin developed with AnchorX and Eastcompeace, aims to facilitate cross-border payments in Belt and Road Initiative (BRI) economies. Strategic collaborations, including digital collectible pilots with McDonald’s China, further underscore the project’s focus on real-world use cases.

Despite the recent selloff, the Total Value Locked (TVL) on Conflux’s smart contract platforms remains at $15.81 million, with decentralized exchange (DEX) volume hovering near $8,700 in the last 24 hours. However, the $CFX/USDT pair has entered a corrective phase, with hourly candles consistently printing red as the price dips toward $0.188. On-chain data reveals aggressive selling pressure during early sessions of July 22, including a $16.42 million negative delta in one hour, reflecting short-term profit-locked activity. While intermittent buying attempts have emerged, they have yet to counteract the prevailing bearish momentum.

Technical analysis suggests the $0.185–$0.188 range is critical for near-term stability. If this support band holds, it could provide a foundation for a potential rebound, provided bullish sentiment regains control. Conversely, a breakdown below this level may trigger further downside, challenging the token’s broader rally narrative. Traders and analysts are monitoring whether Conflux’s ecosystem upgrades and partnerships can sustain long-term value accrual, despite short-term volatility.

The market’s focus now shifts to whether Conflux can maintain its position above $0.20 with fresh volume to validate a potential rebound. Until then, the $CFX price remains in a state of flux, with technical indicators and on-chain activity highlighting the delicate balance between a healthy consolidation phase and an impending breakdown.