The crypto market remains highly volatile, and Conflux $CFX is no exception. A recent price movement on the 4-hour timeframe reveals a key rejection at a critical resistance level, signaling potential downside ahead. Traders must watch this setup closely for upcoming opportunities. Let’s break it down!
Key Observations from the Chart
1. Strong Resistance Zone:
- The price attempted to break above the $0.13163 resistance but failed, indicating strong selling pressure.
- A rejection candle formed inside the highlighted supply zone, confirming the presence of bears.
2. Bearish Price Reaction:
- After hitting resistance, the price dropped quickly, currently trading around $0.11788.
- If selling pressure continues, we could see CFX targeting lower support levels.
3. Potential Support Levels:
- Immediate support lies at $0.1100.
- If the downtrend continues, the next demand zones are around $0.10417 and $0.10324.
4. RSI Indicator Signals Weakness:
- The Relative Strength Index (RSI) has started declining after reaching the overbought region.
- The RSI level 54.29 suggests that bullish momentum is fading.
Possible Trade Setups
📉 Short Scenario:
- Entry: Below $0.1180 (Confirming bearish momentum)
- Target 1: $0.1100
- Target 2: $0.1040
- Stop Loss: Above $0.1320
📈 Long Scenario (If Bulls Regain Control):
- A strong breakout above $0.1320 with volume confirmation could push the price higher.
- In this case, next resistance would be around $0.1450.
Final Thoughts
The current market structure suggests a possible short-term correction, but traders should remain cautious. Breaking below $0.1100 could trigger a further decline , while a reclaim of $0.1320 would shift momentum back in favor of bulls. Stay updated and manage risks wisely! ⚠️📊
💬 What’s your next move on CFX? Bullish or Bearish? Drop your thoughts in the comments! 🚀🔥
