Conflux Token CFX Surges 119.45% Amid Acquisition Speculation and Upgrade

Conflux, a blockchain platform, has experienced a significant surge in its token price, with CFX rising by 119.45% over the course of a week. This dramatic increase has been fueled by several key factors, including speculation surrounding a potential acquisition by a Hong Kong-listed biotech company, the upcoming Conflux 3.0 upgrade, and a China-backed stablecoin pilot program. The token's price skyrocketed from $0.11 to a high of $0.2441, capturing the attention of both traders and institutional investors.

The rally has been further amplified by a classic short squeeze, with over $11 million in short liquidations, indicating a high level of volatility and speculative interest. This short squeeze, combined with the aforementioned catalysts, has created a textbook crypto breakout scenario. The development activity for Conflux, as shown by Santiment, surged from June 23 to July 1, peaking at 4.86, likely due to code pushes ahead of the Conflux 3.0 upgrade. However, since then, the activity has steadily declined, falling to 0.107 by July 21. This pattern suggests a code freeze phase, with the focus shifting from building to testing. While the early spike supports the legitimacy of the rally, continued stagnation may raise concerns if no fresh development momentum appears before the July 30 upgrade milestone.

At the time of writing, CFX is trading at $0.2326, slightly cooling from its recent peak of $0.2215. In just 24 hours, it has gained over 66%, with significant speculative interest confirmed by a 1448%+ spike in trading volume. The Relative Strength Index (RSI) is at an extreme 94.51 on the 4-hour chart, suggesting that the token is heavily overbought. Technically, CFX has blasted through previous resistance zones, riding a steep vertical rally. The 20-period Exponential Moving Average (EMA) has curved sharply upward, and the Bollinger Bands have widened dramatically, indicative of heightened volatility. The parabolic run also coincides with a massive short squeeze of over $11 million in liquidations, and open interest has swelled by 109% to $325 million.

Despite these bullish developments, the rally is approaching exhaustion. The RSI nearing 95 is historically unsustainable, and a correction or consolidation is likely before the next leg up. Traders need to be cautious of the downside support at $0.1869. However, if the momentum picks up pace, CFX price could eye the $0.2814 target. The price surge is driven by a mix of fundamentals, including a potential acquisition by a Hong Kong-listed biotech company, the upcoming Conflux 3.0 upgrade, China’s RMB stablecoin pilot, and a massive short squeeze. Given the RSI in the overbought zone and the price near short-term highs, caution is advised. Consider waiting for a pullback toward $0.17–$0.20 for better entries.