Conflux nears key $0.23 resistance after 297% July surge

Conflux (CFX) is showing signs of potential volatility as it approaches a critical juncture in its price pattern, drawing attention from traders and analysts alike. The token, which saw a significant 297% surge in July—from $0.07 to $0.28—has since consolidated, retracing back to around $0.18. This price action forms a symmetrical triangle pattern, a common chart formation that typically precedes a decisive price breakout [1].

The triangle pattern indicates a period of reduced volatility, with buyers and sellers balancing their positions ahead of a potential move. As the price nears the apex of the triangle, the likelihood of a breakout increases. Traders are closely watching the $0.218 and $0.23 resistance levels, which, if broken, could signal a continuation of the bullish trend. These levels have also been identified as key magnetic zones in the 2-week liquidation heatmap, further reinforcing their significance [1].

Despite the strong July gains, the recent price action over the past ten days has shown more consolidation than a clear upward trend. While the market structure remains bullish, traders are advised to remain cautious due to the potential for a false breakout. The price could test the lower trendline, dip below it briefly, and then resume its upward trajectory. This scenario, though less likely, highlights the need for vigilance as the token inches closer to a critical decision point [1].

The broader market context also supports the possibility of a breakout, especially if institutional or large investors begin to accumulate at current levels. Increased trading volume is often a precursor to sharp price movements, and if this trend continues, a move past $0.24 could be imminent. However, a failure to break through the key resistance levels might trigger a retest of lower support, potentially leading to a pause in the upward momentum [1].

Technical indicators and pattern alignment remain the primary tools for assessing the next potential move in CFX. Traders are advised to monitor these levels closely, as a confirmed breakout could serve as a catalyst for renewed market confidence and broader adoption of the token. The market’s sensitivity to volume and whale activity underscores the importance of staying attuned to on-chain activity and order flow dynamics [1].

Source: [1] Volatility ahead for Conflux: Can CFX explode past $0.23 resistance? (https://ambcrypto.com/volatility-ahead-for-conflux-can-cfx-explode-past-0-23-resistance/)