Conflux (CFX) Price Prediction: The crucial level for the battle between bulls and bears is $0.23, with the head and shoulders pattern suggesting a rise to $0.27?

Conflux (CFX) has maintained a clear upward trend since it broke above $0.10 on July 19, with a single-day big pump of 10% yesterday (CFX price surged). This round of volatility is driven by the rotation of alts and the offshore RMB stablecoin plan (CFX stablecoin) narrative. The technical aspect has formed a bullish inverse head and shoulders pattern, with the neckline coinciding with the short positions' maximum pain point of $0.23. If the long positions can strongly break through this key resistance level (CFX key resistance), the price may surge to $0.27; conversely, if it falls below the $0.20 support (long positions' maximum pain point), it may retrace to $0.18 or even $0.16. The number of on-chain active addresses has reached a new high for the year (CFX on-chain activity), and the Bull vs Bear Battle has intensified.

Reason for Big Pump: Narrative Driven + Market Rotation

Conflux [CFX] price trend has maintained a clear rise since breaking through $0.10 on July 19. According to CoinMarketCap data, CFX has risen by about 10% since the previous day's close.

This round of big pump can be attributed to two major factors: the season of selective alts (Altcoin seasonal rotation) and Conflux's offshore RMB stablecoin plan.

In a market dominated by Bitcoin (BTC) and Ethereum (ETH), these narratives have driven the unusual performance of CFX.

Bull vs Bear Battle: Defining the Key Battleground for Maximum Pain Points

According to CoinGlass data, the maximum pain point for CFX long positions (liquidation zone) is at $0.20, while for short positions it is at $0.23. Sellers have orders worth over $258,000, and buyers have orders of about $280,000 (CFX long and short positions).

The maximum pain point defines the price level that both bulls and bears are determined to defend at all costs. Any side losing this level will trigger large-scale liquidations (risk of bankruptcy).

At the same time, CryptoQuant analysis shows that the Taker CVD (active trading direction) in both the spot and futures markets is dominated by selling pressure (sell orders). Retail activity (CFX retail trading) has also significantly intensified in the Bull vs Bear Battle.

It can be seen that the Conflux market is experiencing intense clashes among participants.

Technical Showdown: Inverse Head and Shoulders Pattern Points to Breakout

(Source: TradingView)

From a technical perspective, CFX long positions are holding their ground, but short positions continue to fight back. Since the beginning of August, both bulls and bears have kept the CFX price fluctuating within the maximum pain threshold.

Since July 19, the CFX has risen by as much as 3 times, but as of the time of writing, it has been reduced to 2 times, currently reported at $0.22.

The key point is that the Conflux price has formed an inverse head and shoulders pattern (reversal pattern), with its neckline coinciding exactly with the short positions' maximum pain point of $0.23. This pattern inherently has bullish characteristics (bullish technical signal).

The momentum indicator (value 0.0223) also points to long positions being in control, and the advance/decline indicator value of 4 further corroborates this view.

The current situation shows that CFX long positions are gradually suppressing short positions. If they successfully break through and stabilize at the key level of $0.23 (the pain point for shorts), the price is expected to rise towards $0.27 (CFX target price). Conversely, if it loses the support at $0.20 (the defense line for longs), it may drop to $0.18 or $0.16.

On-chain activity: Active addresses hit a new high for the year

Network activity is worth noting. Since August 2024, the number of monthly active addresses for CFX has climbed to a cyclical high of 15,200 (on-chain users of CFX). The weekly number of unique addresses reached 4,700.

Earlier this month, the token trading volume (CFX trading volume) hit a historical peak (ATH) of $2.62 billion, although it has now fallen back to $434 million.

Conclusion: Long positions dominate, key resistance level for the decisive battle

Overall, CFX long positions are launching a strong offensive, but the counterattack from short positions cannot be ignored. The inverse head and shoulders pattern formed on the technical front resonates with the maximum pain point of $0.23, laying the groundwork for a breakout. If the on-chain activity (address growth) can continue to support, combined with the narrative of the offshore RMB stablecoin plan (beneficial for the CFX ecosystem) gaining traction, long positions are expected to seize the key stronghold of $0.23 and embark on a new journey to challenge $0.27 (CFX price prediction). Investors need to closely monitor the outcome of the Bull vs Bear Battle in the $0.20-$0.23 range.