Conflux (CFX) once again captured market attention with a sharp rally early Tuesday. The token opened at $0.194 and quickly climbed to a peak of $0.279 before losing steam. Despite breaching critical resistance levels, CFX failed to hold its gains and retraced sharply, currently hovering around $0.21.
Conflux Momentum Builds
CFX kicked off a sharp rally early Tuesday, bouncing back from initial resistance at $0.24 to briefly hit $0.279. The momentum faded quickly as sellers stepped in, leading to an 18% drop. The token now trades without a solid support level.
Three major developments helped ignite the surge: tokenization of real-world assets, rollout of PayFi’s payment tools, and the introduction of offshore RMB and HKD stablecoins. According to user CFX3U, these moves align closely with China’s evolving digital asset strategy, positioning Conflux for broader adoption.
Conflux received its biggest push from a recent collaboration with AnchorX and Eastcompeace Technology. Together, they introduced AxCNH, an offshore yuan-pegged stablecoin. This move positions Conflux as a prime network for blockchain-based cross-border payments, especially in light of China’s pivot toward regulated private stablecoins over state-issued CBDCs.
Moreover, the Defiant suggests that Conflux’s current direction may align with China’s Belt and Road Initiative, further strengthening its long-term growth prospects.
Pilot Programs Set to Launch August 1
Adding to the bullish sentiment, pilot programs for AxCNH are scheduled to launch in Malaysia and Singapore starting August 1. As anticipation builds, many traders expect Conflux to remain in focus, especially as its network upgrade approaches.
CFX revealed signs of strong momentum earlier, briefly pushing above its Bollinger band on the 2-hour timeframe. However, that breakout failed to hold as sellers stepped in quickly.
The price slipped back below the band just two hours later and now continues to move lower. As pressure builds, a drop beneath the $0.20 threshold looks increasingly likely. If that level breaks, CFX risks surrendering over 70% of the gains it stacked during its recent climb.
Zooming out to the 4-hour chart, the signals turn even more concerning. The MACD indicator reveals a clear loss of strength. The 12-day EMA steadily approaches the 26-day EMA, with a bearish crossover on the horizon. Should that crossover complete, traders can expect a deeper decline. Based on prior behaviour, such a shift would likely push CFX toward the $0.18 zone.
Despite the current pressure, some investors are still kin on the $0.35 mark. Two weeks ago, CFX ignited an explosive rally, rising more than 135% in a single session, a move many referred to as a “god candle.”
The surge topped out at $0.249 before momentum cooled off. Earlier today, the token printed a new 2025 high of $0.279, suggesting that bullish forces haven’t fully retreated.
Previous data suggests that once CFX flips $0.30 into support, it tends to accelerate quickly. In late February 2024, for example, the coin surged from $0.24 to $0.295. It didn’t stop there; it further broke above the $0.30 ceiling and climbed to $0.36.
If the current market mirrors that trend, a similar breakout could occur. However, CFX must first regain strength and reclaim lost territory before a move toward $0.35 becomes realistic.
