China’s only public blockchain Conflux sees CFX price shoot 1300% in 2023
Conflux Network (CFX) has surged nearly 500% in the past week, with CFX emerging as one of the top crypto assets of 2023 as China appears to be warming up to cryptocurrency trading.
What is Conflux Network?
Interestingly, the Conflux Network, also known as the Shanghai Tree-Graph Blockchain Research Institute, is the only regulatory, public and permissionless blockchain in China. Conflux is a layer-1 blockchain that operates on a hybrid proof-of-work and proof-of-stake mechanism.
CFX’s price has risen nearly 1,335% year-to-date (YTD) to reach $0.3254 as of February 24, its highest level in fourteen months. In comparison, the combined market capitalization of crypto assets has increased by approximately 45% YTD.
Why are Conflux Network prices increasing?
Strong fundamentals have primarily driven the CFX price higher in 2023.
For example, CFX price increased by more than 90% on January 26, two days after Conflux Network’s collaboration with Little red booka China-based social media platform, to provide non-fungible token (NFT) services.
The partnership enabled Conflux Network to bring its services to Little Red Book’s 200 million user base.
Similarly, on February 15, Conflux Network partnered with China Telecom to develop and pilot a blockchain SIM (BSIM) card service in Hong Kong, gaining exposure to the latter’s 350 million users. CFX’s price has risen 450% since the announcement.
The high-profile deals also helped boost searches for keywords related to the Conflux Network, suggesting growing retail interest. For example, the worldwide Google Trend score for the keyword “Conflux Network” reached 93 and 100 in the period 22-28 respectively. January and 12–18 February.
Social media was mostly focused on Conflux Network’s big partnership deals, according to Santiment data below.
In addition, the CFX market is also coming ahead of the vote on the token burn proposal sometime this week.
So far, the buzz for Conflux Network is palpable. However, that does not protect the CFX price from undergoing a massive correction in the coming weeks.
CFX price rally is ‘overbought’
From a technical standpoint, CFX’s ongoing price boom has made it extremely overbought.
On both daily and weekly charts, CFX’s relative strength index has crossed above 70, suggesting that its ongoing uptrend is nearing exhaustion. Additionally, the Conflux Network token is testing the $0.28-$0.41 range as resistance, which served as support from May to November 2021.
A pullback from the resistance area could see the CFX price fall to $0.097-$0.141 as the primary downside target. The range also coincided with the token’s 50-week exponential moving average (50-week EMA; the red wave) near $0.108, down approx. 65% from today’s price level.
Conversely, a decisive break above the $0.28-$0.41 range could see the CFX price rise towards $0.84, the resistance from the May-September 2021 session
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
