Conflux Price Rises Above $0.25: What Triggered a 40% Rally This Week?

Key Takeaways:

• Conflux price has been recording consecutive bullish candles for the past few days that have lifted the price by more than 40% at the moment
• The buying pressure has accumulated, due to which the price is believed to maintain a healthy upswing, intending to form new yearly highs
• The drop in development activity raises more concern but a slight rise in social dominance keeps the hopes of a continued upswing alive

Conflux, a well-known crypto, has seen some massive price movements in recent times. The token soared from the interim lows of around $0.18 and surged to reach levels above $0.257 within a few days. Moreover, the price flashes signals of reclaiming the levels it traded at the beginning of the month above $0.3 in the coming days. So what triggered such a massive rally of over 40%?

The CFX price rally is said to be the result of its network expansion. In a recent update, Conflux has partnered with DApps, which is a member of Binance Labs. The partnership intends to expand the Conflux user base, increasing the utility of the token in the long run. 

📣 Conflux is partnering with @dappOS_com 🤝

Leveraging dappOS’ innovative solutions, Conflux dApp users will experience simplified workflows and seamless cross-chain execution without incurring additional gas fees. pic.twitter.com/tbEuPk429n

— Conflux Network Official (@Conflux_Network) June 21, 2023

The collaboration and the prevailing positive market sentiments have skyrocketed the CFX price to higher targets. Moreover, Conflux has forged the most strategic partnership in recent times, which may strengthen the fundamentals of the ecosystem and also assist in maintaining a healthy price rally ahead. 

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Conflux (CFX) Technical Overview

Source: Tradingview

• The Conflux price has been trading along the ascending trend line triggered a rebound after testing these levels
• The 50-day MA level at $0.2599 is currently acting as a hindrance to the CFX price rally the moment
• Besides, the RSI is slowly going flat from being incremental and hence the trend is expected to remain consolidated for a while
• However, the buying pressure has increased which may keep up the incremental trend for the next few days

Conflux (CFX) On-Chain Overview

Conflux Development Activity

Source: Santiment

The development activity is recorded over the GitHub repositories, which are generally public and can be accessed by all. The activity is calculated by the number of commits submitted over the platform. The commits are the number of queries, responses, suggestions, or listings of any new features on the platform, the higher the commits, the more the development activity rises, which makes the investor bullish on the token for a longer time frame. 

Unfortunately, the development activity has consistently dropped over time and has reached the lowermost levels since the beginning of the month. It indicates that the development team is less serious about its business proposition and could have halted the activity, which may delay the release of new features or upgrades. 

Conflux Social Dominance

Source: Santiment

The social dominance of a token shows the share of discussions within the crypto media platform referring to that token. It compares the social volume to the combined social volume of the top 100 tokens by market cap. If the social dominance increases by 50%, it signifies that the dominance of the token is half of the total messages or posts of all the top 100 tokens as per the market capitalization. 

The Social dominance of the token has dropped heavily in the first few weeks of May. However, a small rise was recorded that lifted the levels to 0.069% from the lows of around 0.023%. This indicates the token is gaining popularity as market participants are talking about and discussing it.

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Concluding Thought

The Conflux price has been trading under a huge bearish influence for a long time, and the recent bullish rebound has paved the way for a fine upswing. Despite the drop in development activity and social dominance, the price remains elevated. Hence indicating a minor change in the fractuals in the coming days, which may keep up the bullish momentum of the token in the long term.

Values as on June 23, 2023.