🚀 Key Points
Conflux consolidated for over four months and jumped more than 40% within a day after breaking out. As more indicators show a bullish market, is this the beginning of CFX's rebound?
Following an engaging 'Cryptocurrency Week,' the weekend is about to end, with few altcoins experiencing a daily increase of over 10%. This might be the reason for this week's rise.
In this regard, Conflux [CFX] and Tezos [XTZ] are among the best-performing stocks in the past 24 hours, with both stocks rising about 40% as of the time of writing.
📈 What happens after CFX [surges]?
From a technical perspective of the Conflux price chart, the altcoin has broken out of a consolidation pattern that lasted approximately four months.
CFX is gaining momentum, breaking through the $0.10 region, resulting in a 40% increase in its market capitalization.
However, the continuous price surge may expose CFX to pullbacks. According to the price structure, a significant resistance level seems to be around $0.18.
If CFX were to retest, $0.10 seems to be the best range. Alternatively, the ongoing bullish momentum of this altcoin may offset the likelihood of a pullback.
🔥 More bullish signs!
As the upward trend continues, more bullish signals emerge, especially in the derivatives market rather than the spot market. CFX's trading volume surged 374%, reaching $551.55 million.
This is thanks to an increase in open interest (OI) by 109% compared to the previous day.
Additionally, the overall long-short ratio across major exchanges is above 1, indicating that traders are buying CFX. The position ratio of top traders is even higher, which means savvy traders are also betting on higher prices.
In terms of liquidations over the past 24 hours, as prices rose, CFX saw more shorts being liquidated. Within an hour, the liquidation amount for CFX exceeded $700,000, with higher liquidation amounts approaching $1,000,000.
📊 Buyers outnumber sellers
Looking at Binance Futures trading in isolation, the heatmap shows traders reducing short leverage while over-utilizing long leverage.
After the price broke through $0.10, 50x and 25x leverage increased, becoming more evident as the price approached $0.15.
On the other hand, CFX's short orders are decreasing, with 50x orders only appearing in the $0.15 range. This precedent indicates that short sellers have become exhausted.
That said, the cumulative liquidation leverage for shorts is about $1,000,000, while the cumulative liquidation leverage for longs is close to $8,000,000. This indicates a nearly 8-fold gap, confirming that buyers are performing better than sellers.
✅ In summary
Conflux's price shows potential for an upward trend, but caution is still needed given the surge. Nevertheless, reasonable pullbacks can be used to enter the market.