Conflux Network (CFX) Price Shows Signs of Recovery: Double Bottom Formation
The price of Conflux Network’s native token, CFX, recently experienced a significant retracement, reaching its bottom around the $0.1200 level. This represents an 81% discount from its 52-week high and reflects the selling pressure witnessed across the market.
However, there are indications of a potential reversal in the near future. The CFX token has recently formed a double bottom pattern, indicating a possible trend reversal. Additionally, a bullish marubozu candle formation has emerged, suggesting that buyers have started accumulating the token.
At the time of writing, the CFX token is trading at $0.1391, experiencing a slight pullback but showing signs of recovery. The intraday trading volume has declined by over 24%, indicating lower investor optimism.
Despite the recent price drop, some technical indicators suggest that the token may have bottomed out and could soon see a recovery. The daily RSI line has shown a positive crossover, while the MACD indicator still points to a bearish outlook.
Several market participants, such as Decilizer (@decilizer), have expressed optimism regarding the CFX token’s potential. They believe that the token has found strong support around the $0.12 mark and could reach the next target of $0.31, assuming Bitcoin continues its upward trend.
On the other hand, the Total Value Locked (TVL) for the Conflux token has seen a decrease, indicating reduced staking activity and lower investor confidence. However, the future Open Interest (OI) has seen a slight increase, suggesting additional long activity in the past 24 hours.
If the CFX token successfully holds the $0.12 support level, it may have the potential for a significant recovery. In such a scenario, it could retest resistance levels at $0.16 and $0.18 in the coming sessions. Conversely, if it fails to maintain momentum and faces rejection at the 20-day EMA, it may retest the $0.12 support level or even drop to $0.10 in the short term.
Overall, while the recent price drop has challenged the CFX token, there are signs of a potential recovery, driven by market trends and technical indicators.