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China’s only public blockchain Conflux sees CFX price skyrocket by 1300% in 2023

China’s only public blockchain Conflux sees CFX price skyrocket by 1300% in 2023

#Chinas #public #blockchain #Conflux #sees #CFX #price #skyrocket Welcome to InNewCL, here is the new story we have for you today:

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Conflux Network (CFX) is up nearly 500% over the past week, with CFX emerging as one of the best-performing crypto assets in 2023 as China appears to be warming to cryptocurrency trading.

What is Conflux network?

Interestingly, Conflux Network, also known as the Shanghai Tree-Graph Blockchain Research Institute, is the only lawful, public, and permissionless blockchain in China. Conflux is a Layer 1 blockchain based on a hybrid proof-of-work and proof-of-stake mechanism.

CFX’s price is up almost 1,335% year-to-date (YTD) to hit $0.3254 on Feb. 24, its highest level in fourteen months. In comparison, the combined market cap of crypto assets is up about 45% year-to-date.

CFX/USD daily chart. Source: TradingView

Why is the price of the Conflux network increasing?

Strong fundamentals have been the primary drivers of CFX price higher in 2023.

For example, on Jan. 26, two days after partnering with Conflux Network, CFX price surged more than 90% Little Red Booka China-based social media platform to provide Nonfungible Token (NFT) services.

The partnership enabled Conflux Network to offer its services to Little Red Book’s 200 million user base.

CFX/USD daily chart. Source: TradingView

Similarly, on Feb. 15, Conflux Network partnered with China Telecom to develop and test a blockchain SIM card (BSIM) service in Hong Kong, thereby gaining access to the latter’s 350 million users. CFX’s price is up 450% following the announcement.

The high-profile deals also helped boost searches for keywords related to Conflux Network, indicating increased retail interest. For example, the global Google Trend Score for the keyword “Conflux Network” reached 93 and 100 for the periods January 22-28 and February 12-18, respectively.

Interest over time for the keyword “Conflux Network” worldwide. Source: Google Trends

Social media has been mostly focused on Conflux Network’s major partnership deals, as shown by Santiment’s data below.

Social media volume for Conflux Network. Source: Santiment

Additionally, the CFX market bull run also comes ahead of the vote on its token burn proposal sometime this week.

ℹ️ Did you know that the Conflux Foundation has already burned almost 500 million CFX?!

‼️ Our latest DAO Proposal Vote CIP-107 regarding token burning is next week!

Read the full proposal here ⬇️

— Conflux Network Official (@Conflux_Network) February 14, 2023

So far, enthusiasm for Conflux Network is palpable. However, this does not protect the CFX price from a massive correction in the coming weeks.

CFX price rally is ‘overbought’

From a technical perspective, the ongoing price boom has made the CFX extremely overbought.

On both the daily and weekly charts, CFX’s Relative Strength Index has crossed above 70, suggesting that its ongoing uptrend is nearing an end. Additionally, the Conflux Network token is testing the $0.28-$0.41 area as resistance, which served as support from May to November 2021.

Weekly CFX/USD price chart. Source: TradingView

A pullback from the resistance area could drop CFX price to $0.097-$0.141 as the primary downside target. The range also coincided with the token’s 50-week exponential moving average (50-week EMA; the red wave) near $0.108, which is about 65% below the current price level.

Conversely, a decisive break above the $0.28-$0.41 range could see CFX price rally towards $0.84, its May-September 2021 resistance

This article does not contain any investment advice or recommendation. Every investment and trading move involves risk and readers should do their own research when making a decision.

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