Conflux (CFX) has recently captured the attention of cryptocurrency traders, experiencing a period of significant volatility and impressive gains in July. Following a remarkable 297% surge, the L1 blockchain token encountered a retracement, prompting a closer look at its current price action and potential future trajectory.
Recent Price Dynamics
Analysis of CFX's chart reveals the formation of a symmetrical triangle pattern, a common indicator of decreasing volatility preceding a decisive price breakout. After a false breakout attempt towards the end of July, the token has been consolidating, hinting at an impending move as it approaches the pattern's apex. The strong bullish momentum witnessed earlier in July suggests a higher probability of an upward breakout from this pattern. While a test of the lower trendline and a potential fake-out cannot be entirely ruled out, the overall market structure leans towards buyers.
Navigating Future Movements
For traders, key resistance levels to watch are $0.218 and $0.23. Flipping these overhead resistances into support would be a crucial signal for potential long entries. Furthermore, the 2-week liquidation heatmap highlights $0.18 and $0.236 as significant magnetic zones, aligning well with the symmetrical triangle. The proximity of these zones to the current price suggests a strong likelihood of CFX testing $0.24 and potentially moving higher in the short term, provided it successfully navigates the identified resistance points.
