Key Takeaways
Conflux consolidated for more than four months and surged for more than 40% in a day after breakout. As more metrics show bullish conditions, is this the start of CFX’s rally?
As the weekend comes to an end following an engaging “Crypto Week,” very few altcoins achieved more than 10% gains in a day. This was potentially cause of the rise in the current week.
On that note, Conflux [CFX] and Tezos [XTZ] were among the top performers in the last 24 hours, with the two rising approximately 40% in 24 hours as of press time.
What’s next after CFX’s surge?
Looking at the technical outlook of Conflux’s price chart showed the altcoin had broken above consolidation that had been in place for about four months.
CFX broke above the $0.10 zone with great momentum, leading to the 40% positive change in its market value.
However, the continued surge in price could expose CFX to a correction. The distinct level where a major hurdle may be met looks to be $0.18, per the price structure.
Source: TradingView
If CFX was to do a retest, the $0.10 seemed to be the optimal zone where this could happen. Alternatively, continued momentum of the altcoin could topple the chances of a correction.
More bullish signs!
As the charge continued, more bullish signs reigned, especially in the derivative markets as opposed to spot. CFX’s volume rose 374% reaching $551.55 million.
This was supported by Open Interest (OI) that was 109% higher than that of the previous day.
Additionally, the overall Long/Short ratio across different top exchanges was above the 1 mark, suggesting traders were buying CFX. That of top traders was higher, meaning the savvy one were also betting higher prices.
Source: CoinGlass
For liquidations in the last 24 hours, CFX was seeing more shorts taken out as price pumped.
As of press time, across the one-hour time frame, CFX was seeing in excess of $700K while the higher ones got almost $1 Million in liquidations.
Buyers outweigh sellers
Isolating trading on Binance Futures, the heatmap showed that traders were over-leveraging on longs as they reduced that of shorts.
The 50X and 25X leverages increased after price broke above $0.10 and became more pronounced as price approached $0.15.
On the other hand, CFX short orders were reducing with 50X only appearing at the $0.15 range. This precedence suggested that short traders were getting exhausted.
That said, the cumulative short liquidation leverage was about $1M while that of longs was close to $8M. This meant a disparity of almost of 8X confirming buyers had outdone sellers.
Source: CoinGlass
Winding up, the price of Conflux showed but upside potential, but caution was warranted bearing in mind the pump. That said, reasonable pullbacks could be utilized for price entries.
