$CFX

Conflux’s 112.84% 24-hour surge reflects a perfect storm of strategic partnerships, supply shocks, and bullish derivatives activity.

RMB stablecoin pilot with Chinese fintech giants boosted institutional confidence.

Short squeeze liquidated $1M+ positions as price broke key resistance.

Conflux 3.0 upgrade anticipation (July 30) fueled speculative demand.

Deep Dive

1. Primary Catalyst: Offshore RMB Stablecoin Launch

Conflux surged 17% at 5:16 PM UTC+0 on July 20 after announcing a Shanghai government-backed RMB stablecoin pilot with AnchorX, Dongxin, and Ping An (TokentopNews). This aligns with China’s Belt and Road strategy, positioning CFX as a bridge for cross-border settlements challenging SWIFT. The launch coincided with Conflux’s Tree Graph 3.0 mainnet release, emphasizing enterprise-grade scalability.

2. Technical Context: Breakout + Liquidation Cascade

Price action: CFX broke the 23.6% Fibonacci retracement ($0.102) with 4,600% volume spike to $1.47B.

RSI 14: 72.65 (neutral but rising) – momentum suggests room before overbought.

Liquidations: $1M shorts liquidated in 24h vs. $8M longs, creating asymmetric squeeze pressure (AMBCrypto).

3. Supporting Factors: Supply Shock & Altcoin Momentum

Tokenomics: 76M CFX burned and 500M staked since May tightened supply by ~11% (CoinMarketCap).

Sector rotation: Altcoin Season Index rose 173% in 30 days, with capital flowing into China-linked narratives.

Conclusion

CFX’s rally combines geopolitical fintech positioning, engineered scarcity, and leveraged trading dynamics. Watch for $0.25 resistance (161.8% Fibonacci extension) and whether the stablecoin pilot gains traction beyond hype.

Will Conflux sustain its role as China’s regulatory-compliant blockchain flagship, or will profit-taking erase gains post-upgrade?