Recently, the cryptocurrency Conflux (CFX) has experienced significant growth, increasing by over 50%. This is attributed to several factors including a new stablecoin pilot and an upcoming network upgrade.
Factors Behind CFX Price Surge
One of the primary reasons for the CFX price increase is the announcement of a new RMB stablecoin pilot introduced at an event in Shanghai. Analyst Stacy Muur pointed out that the initiative, in collaboration with AnchorX and China Telecom, garners investor attention. Furthermore, Conflux stands out as one of the few blockchain projects with government ties, amplifying market interest.
Rapid Short Squeeze
Another significant factor has been a rapid short squeeze in the derivatives market. Data shows $11 million in short positions were liquidated while open interest skyrocketed by 140%. These developments contributed to CFX's upward price movement. Additionally, a supply reduction has been noted, with 76 million tokens burned and 500 million tokens staked since May.
Technical Levels and Analyst Insights
Chart analysis from Crypto Tony indicates that $0.25 is a crucial level for CFX. He noted that a reclaim of this price would serve as a safer entry point for traders. The breakout above resistance of $0.11 and $0.13 resulted in a 121.60% rally within 24 hours, potentially paving the way toward new target zones between $0.30 and $0.35.
Currently, CFX is trading with robust momentum, driven by a combination of network developments, macroeconomic shifts, and technical breakouts.
