Conflux (CFX) price has dropped by 66.38% in the past 6 months, disappointing many investors. After a sharp sell-off, CFX price dropped to the demand zone before the bearish trend stalled around $0.120. CFX sellers made several attempts to pull the price below the critical $0.120 support but failed.
The CFX cryptocurrency continues to fall due to the resistance of the descending trendline. However, buyers have managed to hold the $0.120 mark, which shows their involvement. Here is an analysis of what might happen to the Conflux price in the demand zone.
Can small risks trigger large price movements in CFX?
The CFX cryptocurrency experienced a massive buying spree at the beginning of 2023, and the same has been repeated this year, with the CFX price having reached the previous support level of $0.120. It has risen 4 times from this point, and when it reached the key breakout level of $0.150, it generated a buy signal, indicating that it is in a good area for bullish predictions.
CFX Price Analysis Based on Technical Indicators
At the time of writing, the MACD formed a bullish crossover with the signal line and entered the positive territory. The histogram has turned green, which may attract buyers.
The RSI is showing a bullish divergence and is moving towards the overbought region with support from the RSI-based moving average. Further analysis of technical indicators can help predict the price of Conflux.
As of writing, CFX price is $0.147, up 4.38% in the past 24 hours. The market cap of the token is $636.45 million. Also, its 24-hour trading volume is $24.09 million.
Conflux price has formed a descending triangle pattern on the daily chart. However, the CFX cryptocurrency has moved above the 20-day exponential moving average (EMA), reaching a critical breakout level.
Assuming the price of the crypto asset surpasses the downtrend line, it may generate a buy signal and attract buyers. Investors may show interest if the price breaks above the 200-day EMA, which may lead to a long-term bullish trend.
On the other hand, if the CFX cryptocurrency price faces resistance at the trendline, it could drop to the major support levels. If the price starts to break below the major support levels, there could be a major sell-off and the price will fall.
Conflux Token Price Analysis
Analysis shows that CFX price is at a critical point at press time. A bullish breakout is possible if it breaks above the downtrend line and the 200-day EMA.
Technical indicators such as MACD and RSI are showing bullish signals and the price is also showing bullish momentum in the demand zone.
However, it is important to keep a close eye on the price, especially if it starts to break below major support levels. This move could lead to a significant sell-off of the coin. Additionally, the historical buying patterns and the formation of a descending triangle pattern add layers to the analysis.
