1. Profit-taking after the significant rise
After the strong rise that CFX experienced — jumping almost over 100% during July due to the announcement of the Conflux 3.0 update and its innovations (with processing power reaching 15,000 TPS, integration of artificial intelligence, and stability linked to the yuan) — it is natural for some investors to resort to profit-taking, causing a slight price decline.
2. Natural technical correction and a desire to cool down
The rapid rise entered the market in "overbought" areas, according to indicators like RSI that recorded very high levels — exceeding 90 according to some reports. This indicates the possibility of a correction or stabilization before resuming the upward trend.
3. Launch of Conflux 3.0 and the timeline for distributions
According to Binance, the coin saw a decline of 12.34% within 24 hours at the official launch of Conflux 3.0, partly due to:
The start of distributing part of the tokens (Token unlock) scheduled for August 4; this could increase selling pressure.
The expected volatility after a period of excitement and news pumping.
4. Technical pattern of consolidation
After the surge that jumped the price from about $0.07 to nearly $0.28, CFX entered a consolidation phase at levels of $0.18–$0.22, forming a pattern of a "symmetrical triangle" indicating the possibility of continued upward movement after a temporary dissipation of momentum.
5. Short squeezes and their effects
During the rise, millions of dollars in short positions were liquidated, which initially helped push the price up. As the price entered stable levels, the momentum of optimistic traders may have declined, representing slight downward pressure.
