Conflux (CFX) Soars 42% as Yuan-Backed Stablecoin 3.0 Upgrade Drive 320% Volume Surge

Conflux (CFX) experienced a significant price surge of 42% within 24 hours, driven by the announcement of a yuan-backed stablecoin and anticipation surrounding the Conflux 3.0 network upgrade. The token reached an intraday high of $0.28 before stabilizing near $0.266, while its market capitalization increased by 41.72% to $1.36 billion [1]. The rally followed a sharp breakout from a consolidation phase, with trading volume spiking 320% to $619.1 million, signaling robust investor participation.

Technical analysis highlights divergent signals. The Relative Strength Index (RSI) for CFX surged to 82.04, indicating overbought conditions and potential short-term corrections. However, the Moving Average Convergence Divergence (MACD) remains bullish, with the histogram in positive territory and a widening gap between the MACD line (0.00834) and signal line (0.02657). This suggests sustained momentum despite elevated RSI readings [1].

The price action began from a support level of $0.1873, followed by a rapid ascent that outperformed broader market trends. Analysts note that while overbought RSI levels often precede pullbacks, the MACD's strength implies the upward trend could persist. Immediate resistance is positioned near $0.28, with a potential target of the $0.30 psychological level if buyers overcome current barriers [1].

The yuan-backed stablecoin announcement has drawn particular attention, as it aligns with growing interest in fiat-pegged digital assets. The Conflux 3.0 upgrade, expected to enhance network scalability and security, further fuels speculation about the token’s utility and adoption.

Investor sentiment appears influenced by both fundamental developments and technical indicators. While the 320% volume surge validates the rally’s legitimacy, the RSI’s proximity to overbought territory warrants caution. Traders may closely monitor whether the price can hold above $0.266 to confirm the breakout’s durability [1].

Source: [1] Conflux (CFX) Jumps 42% as a New Yuan-Backed Stablecoin Is Announced (https://coinedition.com/conflux-cfx-soars-on-yuan-backed-stablecoin-news/)