Conflux (CFX) stock is showing strong bullish momentum on the daily technical chart.
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The price of CFX has increased by nearly 9% in the past 24 hours, indicating an upward trend.
Conflux (CFX) is showing strong bullish signs, and technical indicators suggest the cryptocurrency is about to enter a bullish wave and is likely to begin a strong recovery phase. The coin is up 9% according to CoinMarketCap data, with daily trading volume surging by a whopping 110%, indicating a massive influx of institutional and individual interest.
Its price is showing a strong breakout after months of consolidation. Conflux had been trading within a tight range between $0.08 and $0.12 for months, but recently broke out with massive buying volume. Now approaching $0.2000, it's important to recognize that it has cleared the significant resistance level it held prior to the current price surge that began in February and continued through July.
Moving averages confirm this bullish theory. The 50-day EMA has crossed above the 200-day EMA, which technical analysts consider a "golden cross." A golden cross typically conveys a positive sentiment for the market and signals the potential start of a new uptrend. The price is currently trading well above both the 50- and 200-day EMAs, indicating recent upward momentum.
What's next for Conflux (CFX) price?
Source: Tradingview
The Relative Strength Index (RSI) is showing positive momentum at 70.56, while the price is approaching overbought levels. The price is not currently at an extreme level that would signal an immediate reversal, giving it plenty of room to rise before encountering significant technical resistance. The MACD histogram is showing strong positive momentum, and the MACD line has just crossed above its signal line, supporting our bullish outlook.
Volume analysis confirms this breakout, with total trading volume increasing by 110%. This not only validates the breakout and suggests that it was not a low-volume manipulation, but also indicates increased institutional accumulation and increased interest in CFX stock from individual investors.
Furthermore, the next major resistance level appears to be at $0.25, which is in line with its previous highs. If CFX stock maintains its momentum and remains above the $0.15 support area, it could demonstrate an upward surge towards higher targets. Considering the technical breakout, the position of the moving averages, the massive volume, and retail participation, there appears to be a strong case for continued upward momentum in the near term.