Conflux/Tether (CFXUSDT) Market Overview

• CFXUSDT closed lower at 0.1411 from a high of 0.1427, with bearish momentum emerging mid-day.
• Volatility surged after 16:00 ET as price broke key resistance, reaching a 24-hour high of 0.1467.
• Volume and turnover spiked during the late ET session, signaling strong short-term interest.
• RSI overbought territory and a bullish engulfing pattern at 0.1425 suggest potential reversal.
• Bollinger Bands showed a contraction early in the session, followed by a sharp expansion.

Opening and Closing Summary

At 12:00 ET–1, Conflux/Tether (CFXUSDT) opened at 0.1416, reached a high of 0.1467, and closed at 0.1411 at 12:00 ET. The pair experienced a total volume of 12,959,344.0 and a turnover of 1,830.59 over the 24-hour period, showing a mix of bearish and bullish phases.

Structure & Formations

Key support levels appear to form at 0.1409 and 0.1393, with resistance at 0.1425 and 0.1437. A bullish engulfing pattern emerged at 0.1425, following a bearish trend, suggesting potential reversal. A doji at 0.1413 also signals indecision. A strong bearish move below 0.1409 could trigger a test of 0.1385.

Moving Averages

On the 15-minute chart, the 20-period MA crossed above the 50-period MA in the midday session, indicating a brief bullish signal. The 50-period MA remains above 0.1408, suggesting bearish pressure. On the daily chart, the 50-period MA sits at 0.1410, while the 200-period MA is at 0.1396, suggesting a potential retest of the 50/200 MA convergence.

MACD & RSI

The MACD line crossed above the signal line in the early ET session, indicating a short-term bullish divergence, but closed below zero by the end of the day. RSI reached 72 near the 16:00 ET high of 0.1467, indicating overbought conditions and a potential pullback. A return to the 50-60 RSI range could signal renewed buying interest.

Bollinger Bands

Volatility saw a notable contraction before 14:00 ET, followed by a sharp expansion post 16:00 ET, which coincided with the 0.1467 high. Price traded near the upper band for several hours, indicating overbought conditions. The lower band held at 0.1408, forming a key support. A break below the lower band could confirm a bearish bias.

Volume & Turnover

Volume and turnover saw a significant spike in the 16:00–18:00 ET window, reaching a high of 1.8 million volume and a turnover of 0.27, while price hit 0.1467. This suggests strong conviction behind the move. However, price and volume diverged slightly in the late ET session, indicating potential exhaustion of the bullish move.

Fibonacci Retracements

Applying Fibonacci to the 15-minute swing from 0.1401 to 0.1467, key retracement levels at 0.1442 (38.2%) and 0.1427 (61.8%) align with the observed consolidation. A pullback to the 0.1427 level could trigger renewed buying interest, while a break below 0.1413 may test the 0.1409 support.

Backtest Hypothesis

The backtesting strategy suggests entering long positions on a bullish engulfing pattern when the RSI crosses above 50 and the MACD line crosses above the signal line on the 15-minute chart. A stop-loss is placed below the previous swing low, and a take-profit is set at the 38.2% Fibonacci level. This setup aligns with the recent action near 0.1425 and could serve as a potential trigger for traders looking to capture short-term momentum.