Conflux Network (CFX) has been on a tear in 2023, with its price rising nearly 1,335% year-to-date (YTD). The surge in CFX’s price has been driven by strong fundamentals, such as its partnerships with Little Red Book and China Telecom, as well as increasing retail interest.
Conflux Network, also known as Shanghai Tree-Graph Blockchain Research Institute, is the only regulatory-compliant, public and permissionless blockchain in China. It operates on a hybrid proof-of-work and proof-of-stake mechanism.
The partnership with Little Red Book enabled Conflux Network to bring its services to the platform’s 200 million users. Similarly, the partnership with China Telecom gave Conflux Network exposure to the latter’s 350 million users.
The buzz for Conflux Network is palpable, but that does not safeguard CFX’s price from undergoing a massive correction in the coming weeks. On both daily and weekly charts, CFX’s relative strength index has crossed above 70, which hints that its ongoing uptrend is near exhaustion.
A pullback from the resistance area could have CFX’s price fall to $0.097–$0.141 as its primary downside target. Conversely, a decisive breakout above the $0.28–$0.41 range could have CFX’s price rally toward $0.84, its resistance from the May–September 2021 session.
Investors should be aware that the CFX market bull run could be short-lived and that they should conduct their own research before making any investment decisions.