Key Takeaways
- CFX has seen a decline of 2% in the past 24 hours and may soon fall below $0.20.
- The coin reached a peak of $0.27 last week amidst growing adoption buzz in China.
CFX Experiences a 2% Drop Amid Market Recovery
CFX, the native coin of the Coinflux blockchain, is underperforming even as the broader cryptocurrency market sees recovery. Over the last 24 hours, it has lost nearly 2% of its value and is at risk of dropping below the critical $0.20 mark.
This downturn follows a substantial 14% increase last week, where CFX peaked at $0.27. Analysts attribute this initial surge to optimism surrounding the coin’s potential adoption in China, as the nation appears to warm up to stablecoins.
There are reports that Conflux is preparing to launch an offshore stablecoin in yuan, signaling a potential breakthrough as one of China’s first stablecoin projects. This excitement has contributed to an impressive 190% surge in CFX’s value over the past month.
Despite these recent gains, CFX remains 87% down from its all-time high of $1.70 achieved four years ago.
Possible Retreat Below $0.20 for CFX
Looking at the 4-hour chart for the CFX/USD pair, indications show that while the coin had been performing well recently, a further correction might be imminent before any recovery can occur.
Technical indicators remain bullish, suggesting that buyers still hold the upper hand. However, the relative strength index (RSI) is showing signs of fading momentum, while MACD lines approach the neutral zone.
As of this writing, CFX is trading at $0.2097. Should the correction continue, it may test the Inducement Liquidity (ILQ) level at $0.159 within hours or days. A failure to hold this level could see CFX plummeting to a major support level at $0.102.
Nevertheless, the CFX/USD pair holds a bullish outlook and may regain its upward momentum soon. If positive momentum returns, CFX might surpass last week’s peak of $0.2789, potentially breaking the $0.30 barrier for the first time since April 2024.
