Key Highlights
Conflux has seen a rise of approximately 10% in its value over the past
day. The uppermost level where long positions face maximum losses was
observed at $0.20, while for short positions, it was at $0.23. The
question is: will the buyers or sellers dominate this round?
Since July 19th,
Conflux (CFX)
has maintained an evident upward price trend, starting when it surpassed
$0.10. According to data from CoinMarketCap, Conflux has climbed around 10%
since the previous day’s market closure.
This price increase could be linked to a couple of elements, including a
period of growth specifically for alternative cryptocurrencies and Conflux’s
strategies for an offshore yuan-backed stablecoin.
These narratives have been fueling this unusual trend, especially during a
period where only
Bitcoin (BTC)
and
Ethereum (ETH)
have managed to maintain their strength.
Conflux (CFX) Maximum Pain Points
Data sourced from CoinGlass indicates that the levels of maximum potential
loss for long and short positions were identified at $0.20 and $0.23,
respectively. Sellers had placed orders amounting to more than $258,000,
while buyers had positions totaling approximately $280,000.
Source: CoinGlass
These maximum pain thresholds represent the key levels that buyers and
sellers are aiming to defend. Failing to hold these levels could result in
liquidations on either side.
Simultaneously,
analysis from CryptoQuant
revealed that selling activity, as indicated by the taker buy-sell volume,
was dominant in both spot and futures markets. Furthermore, there’s
increased retail involvement amidst this struggle between bullish and
bearish forces.
Bearing this in mind, the Conflux cryptocurrency market is currently
experiencing a battle between different market players.
The Battle Between Buyers and Sellers
From a technical standpoint, CFX indicates that buyers are maintaining their
position, but sellers are countering with pushes each time. Since the start
of August, the tug-of-war between these two groups has kept CFX contained
within a range between the maximum pain levels.
CFX has increased threefold since July 19th, but those gains have since been
reduced to a doubling, with the price around $0.22 at the time of this
report.
Nevertheless, the price pattern of Conflux has formed an inverse
head-and-shoulders pattern, with the neckline aligning with the maximum pain
threshold for short positions, typically indicative of a bullish trend.
Source: TradingView
The momentum is also inclining towards bullish control, displaying a value
of 0.0223. Further supporting this outlook, the Advance/Decline indicator
shows a value of 4.
From the current view, it seems CFX buyers are surpassing sellers. A
breakthrough and hold above the $0.23 pain level may enable buyers to drive
the price towards $0.27. Alternatively, failing to defend the $0.20 level
suggests a potential drop back to $0.18 or $0.16 levels.
Rising Network Engagement
Of particular significance is the increasing network engagement. The count
of active monthly addresses has peaked at 15,200 for the period since
August 2024. On a weekly basis, the number of unique addresses totals
4,700.
Source: Token Terminal
The token’s trading volume also reached an all-time high of $2.62 billion
earlier in the month. However, the value has since decreased to $434
million.
In conclusion, while buyers are putting up a strong fight, the pressure from
sellers cannot be disregarded.