Conflux, an innovative decentralized finance (DeFi) ecosystem in Asia, facilitates interconnectivity and collaboration across multiple blockchains, surpassing geographical limitations. It functions as a permissionless Layer 1 public blockchain founded in 2018 under the Conflux Foundation. This blockchain enables decentralized economies to function across a wide range of protocols. In pursuit of a globally accessible and sustainable economy, the Conflux blockchain is transforming international responses to economic challenges.
The Conflux Network is currently trading at $0.2287, accompanied by a 24-hour volume of $140.58 million in transactions. With a market capitalization of $835.39 million, it maintains a 0.05% market dominance. About supply, Conflux Network possesses 3.65 billion CFX in circulation, which is out of a maximum of 4.96 billion CFX. With an annual supply inflation rate of 74.56%, 1.56 billion CFX were produced in the preceding year.
Recently, Conflux Network has introduced groundbreaking strategies for a novel EVM-compatible Bitcoin Layer 2 (BTC L2) solution. It will enhance decentralized finance (DeFi) by implementing a Layer 2 solution that facilitates Bitcoin compatibility with the Ethereum Virtual Machine (EVM).
The disclosure of this innovative undertaking has generated enthusiasm and had a favorable impact on the worth of Conflux's native token, CFX.
Incorporating an EVM-compatible Bitcoin Layer 2 by Conflux represents a significant progression in blockchain technology. By connecting various asset classes, this interoperability strengthens the decentralized financial environment the Bitcoin blockchain provides.
Furthermore, the assurance of heightened security for smart contracts developed by third parties highlights Conflux's commitment to establishing a resilient and reliable blockchain infrastructure. By incorporating Bitcoin staking into the PoS consensus protocol, Conflux enhances its credibility via token participation, thereby conforming to the prevailing practice of staking for network security.
CFX/USDT Bulls Are Ready To Fly
The previous year, CFX demonstrated outstanding performance, amassing an impressive 708% growth, surpassing 96% of the leading one hundred cryptocurrencies. CFX has significantly outperformed industry titans such as Bitcoin and Ethereum, suggesting substantial expansion and promise. Supportive momentum is sustained, evidenced by its position above the 200-day simple moving average.
Achieving 17 green days in the preceding 30 days, or 57% of the time, CFX demonstrates the market's consistent strength and optimistic sentiment. The substantial market capitalization of the asset further emphasizes its attractiveness to traders and investors.
The rising 20-week EMA acts as a strong support in the weekly chart, backed by the 100-week SMA.
Therefore, as long as the price holds above these lines, an upward continuation could happen, targeting the 0.4500 psychological area.
On the bearish side, a failure to hold the price above the 100-week SMA could be a short-term bearish possibility towards the 0.0989 level.
CFX/USDT Ichimoku Cloud Analysis
The ongoing buying pressure is visible within the ascending channel, where the channel extension could take the price above the Cloud resistance. In that case, a stable cloud breakout with consolidation above the Senkou Span B line could be a valid bull case.
The ADX shows an ongoing trend, supported by the dynamic Kijun Sen. Therefore, a bullish weekly candle above the 0.2820 resistance level could activate the long-term bull run targeting the 0.4800 level.
The alternative approach is to wait for a bearish channel breakout with a weekly candle below the dynamic Kijun Sen. In that case, the downside pressure could extend toward the 0.0800 area.
CFX/USDT Price Action Analysis
In the daily chart, the bullish continuation is present, supported by the rising 100-day SMA level. Moreover, the visible range high volume level is below the current structure, supporting the buying pressure.
In the Traders Dynamic Index indicator, the current TDI level indicates a stable upward pressure as the current reading is above the 50.00 line.
Based on this structure, the upward continuation might happen once the bearish mean reversion is over. In that case, the buying pressure is valid as long as the price trades above the 0.1639 level.
Is CFX/USDT A Buy?
Based on the current market structure, CFX/USDT has a higher possibility of continuing the bullish pressure. Investors should monitor how the price reacts on the daily and intraday swing lows to find the high probable long opportunity.