Conflux Price Surges 10% But Stalls at Key $0.23 Resistance

Conflux (CFX) has seen a notable 10% price increase over the last 24 hours, per data from CoinMarketCap, marking a sharp upward movement since it crossed $0.10 on July 19 [1]. This rally, however, has hit a wall as the asset now faces a critical juncture, with the price hovering near a key resistance level. According to CoinGlass, the maximum pain levels for longs and shorts are at $0.20 and $0.23 respectively, with over $258K in short positions and $280K in long positions currently at risk [1]. These levels represent pivotal thresholds that will determine the direction of the next price move.

The recent surge in CFX is being attributed to a combination of a selective altcoin season and Conflux’s proposed offshore yuan stablecoin initiatives [1]. This has led to increased retail participation and a sell-dominant taker CVD, according to CryptoQuant, indicating that market participants are actively positioning for either a breakout or a breakdown [1]. The price has been range-bound since August 1, confined between the two max pain levels, despite earlier hitting a 3x increase from the July 19 level [1].

From a technical standpoint, the CFX price has formed an inverted head and shoulders pattern, with the neckline aligning with the short max pain level at $0.23 [1]. A successful breakout above this level could signal a potential move toward $0.27, reinforcing a bullish bias. Conversely, a failure to defend the $0.20 level may push the price back toward $0.18 or even $0.16 [1]. The momentum indicator is currently at 0.0223, suggesting a tilt toward bullish control, while the Advance/Decline indicator shows a reading of 4, reinforcing this sentiment [1].

Network activity is also showing signs of increased engagement, with monthly active addresses reaching 15.2K and weekly unique addresses hitting 4.7K as of August 2024 [1]. Earlier in the month, the token’s trading volume peaked at an all-time high of $2.62 billion, although it has since cooled to $434 million [1]. This suggests that while the project is attracting attention, the initial speculative surge has started to moderate.

The battle between bulls and bears has intensified, with each side attempting to assert control over key price levels. A breach and sustained hold above $0.23 could mark a turning point for CFX, unlocking further gains. However, continued pressure on $0.20 remains a critical risk for long positions. Investors are advised to closely monitor the price action and on-chain indicators, as the next move could signal either a broader bullish trend or a temporary consolidation phase [1].

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[1] Conflux surges 10%, but CFX price stalls at THIS crucial level, AMBCrypto, [https://ambcrypto.com/conflux-surges-10-but-cfx-price-stalls-at-this-crucial-level/](https://ambcrypto.com/conflux-surges-10-but-cfx-price-stalls-at-this-crucial-level/)