Why did Conflux Network Price Rise by 1100%?

Key Takeaways:

• Conflux price rose by over 1100% since the beginning of the month, marking highs beyond $0.3 in a very short span of time
• The buying pressure doesn’t appear to wane and hence the bullish momentum may prevail for long
• The surging development activity indicates fuels the bullish market sentiments prevailing but the stagnant weighted sentiments may raise some concerns

Conflux Network, also called Shanghai Tree-Graph Blockchain Research Institute, is a regulated blockchain in China that is public and permissionless. The primary reason for the spectacular rally is said to be the strong fundamentals. The price spiked immediately after the platform announced its partnership with Little Red Book, which is a social media platform offering NFT services. 

Besides, the platform also partnered with China Telecom aiming to develop a blockchain-based SIM card service in Hong Kong. With this, the CFX price was triggered with a massive upswing and raised iconically. Moreover, the search volume for the token also rose, as seen in Google Trends, and is expected to surge furthermore. 

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Conflux Network Technical Overview

Source: Tradingview

• The CFX price began to trade within an ascending parallel channel ever since the rally spiked with massive strength, a few days before
• The recent upswing has raised the price over the average bands and hence the ascending trend is believed to be continued further
• Moreover, the RSI is trading within the upper bands in the short term, due to which the rally may break above the channel, once the RSI rises high
• Presently, the rally is witnessing a minor pullback that may offer a catapult action to rise high in the coming days

Conflux Network On-Chain Analysis

Conflux Development Activity

Source: Sentiment

Developer activity indicates the network’s health and growth as it offers a deep insight into the level of interest and involvement of the core developers. This is a very crucial metric as the development of new features, increased security, network effect, innovation, etc can be gauged clearly. The activity is recorded on the GitHub repository which is usually public and can be assessed by anyone. 

Presently, the development activity over the Conflux Network is surging extremely high indicating the development team is more serious about the business prospects of the network. Hence, one can expect new upgrades or features over the platform in the coming days. This induces significant bullish momentum over the platform that may positively impact the price ahead.

Conflux Social Dominance

Source: Santiment

The total weighted sentiment displays the mood of the investors and their prediction of the upcoming rally with respect to the token. It combines positive and negative mentions over time and multiplies with the amount of the social volume. If the sentiment is within the lowest levels, it indicates the negative sentiments prevailing within the space and vice versa.

The weighted sentiments of CFX have been trading below average levels for quite a long time, including a couple of spikes which were settled in a short span of time. The price after a gigantic rally has gained significant positive mentions which have uplifted the sentiments to a large extent and hence a positive impact on the value may also be expected

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Conflux Sharpe Ratio

Source: Messari.io

The Sharpe ratio is a measure that indicates whether the investment is worth taking any risks or not. It measures the average return on investment and indicates whether the token has the potential to incur profits compared to the risks. A higher value usually attracts more investment which also sheds light on the portfolio performance too.

The ratio has spiked heavily since the beginning of the month after maintaining decent volatility for quite a long time. With the spike, the token has now come in extremely profitable braces but with more risks paying off as the returns could be above average.

Concluding Thought!

The Conflux Network price has witnessed massive upswings in recent times as the robust fundamentals have fueled the price rally. Moreover, the development activity is also touching the sky and hence one can expect a continued trend for a while ahead. Besides, the weighted sentiments display less adoption of the token as the market participants are still away from the token. Now when the CFX price displayed a magnificent upswing, it may also witness an increased attention and adoption very soon.