Conflux drops as volatility spikes and sellers remain in control

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Conflux drops 8.07% today on China news

Highlights

China's Communist Party Central Committee released a new 19-point policy pushing for a national blockchain network but did not assign an official role to Conflux or its CFX token.
Market focus remains on regulatory-compliant blockchain infrastructure, with Conflux viewed as a major domestic candidate for such compliance.
CFX/USD trades under near-term moving averages with momentum signals strongly bearish and is projected to range from $0.053 to $0.0644 over the next two to three sessions.

Policy announcement boosts attention but CFX faces lingering sell pressure

China's Communist Party Central Committee and State Council have published a new 19-point policy document outlining the drive to construct a national blockchain network, according to Finance Biggo. This release brings renewed market attention to regulatory-compliant blockchain infrastructure, with Conflux often seen as the key domestic candidate for such compliance. However, the policy document stops short of designating Conflux or its token CFX for an official role, and price action has remained under broader selling pressure.

Moving average barriers reinforce bearish momentum amid indicator divergence

On the technical front, CFX/USD remains below the MA-20 ($0.0592) and MA-50 ($0.0636) on the hourly setup while holding above the long-term MA-200 ($0.0507). The Ichimoku Kijun sits at $0.0596, acting as immediate overhead resistance. MACD shows a strong sell signal, supported by a negative reading from ADX, while RSI is at 39.72, indicating bearish momentum. Stoch RSI is overbought and CCI prints a neutral stance, highlighting some divergence among oscillators. Bull/Bear Power indicates intraday selling dominance, though the daily candle closes near session highs after substantial volatility.

Downside risk prevails as price hovers within resistance band

Over the next two to three sessions, CFX/USD is expected to fluctuate within a $0.053 to $0.0644 band, reflecting typical volatility at current levels. The probability of a further drop outweighs a bullish reversal, with odds estimated at 55% for a downside scenario and 45% for an upswing. A clear move above the $0.0596 resistance would be needed to shift short-term momentum higher, whereas a sustained break below $0.053 could trigger a deeper bearish extension.

Anton Kharitonov, expert at Traders Union, sees limited upside for Conflux despite renewed attention from China’s blockchain policy announcement. He notes that both technical and sentiment signals remain weak, with price action unable to overcome key resistance at $0.0596. The lack of official state endorsement keeps downside risks in focus. "Unless CFX reclaims the $0.0596 level, I remain cautious and see further declines as the base case."

Earlier, analysts noted that Conflux was exhibiting strong underlying momentum but faced persistent selling pressure following China’s national blockchain policy announcements. The current analysis signals a shift toward bearish momentum as technical indicators deteriorate, making a decisive move above the Ichimoku Kijun at $0.0596 critical for any near-term reversal.

Source of Data: CFX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.