The price of Conflux (CFX) has surged 100% in the last 24 hours, and not without reason. This surge occurred right after Conflux announced a pilot of a yuan (RMB)-based stablecoin for cross-border transactions. The project involves two major Shanghai-based companies, AnchorX and Eastcompeace.
What’s even more exciting for investors is that Conflux is the only public blockchain project with special legal status in China.
So, as the country pushes for the use of technology in the financial sector, Conflux’s name automatically becomes a hot topic. Furthermore, institutional interest is slowly starting to build. They’re not just taking notice, but also starting to assess the opportunities.
Conflux heats up: RSI spikes, network upgrade, and burn effects
From a technical perspective, according to CoinMarketCap data, the Relative Strength Index (RSI) indicator briefly touched 93.2, which is extremely high, even for a parabolic rally. But that doesn’t mean it’s excessive.
The MACD also confirms the bullish trend, with its histogram flashing in the green zone. This means that buying pressure remains strong and shows no signs of tiring.
Furthermore, a major Conflux network upgrade,cof version 3.0, will be released on July 30th. This upgrade focuses on improving smart contract efficiency and network capabilities. Developers have also been seen to be increasingly active on GitHub, which is usually a sign that something is being prepared.
On the other hand, supply pressure is another reason why the price could explode. Last May, 76 million CFX were burned, and another 500 million were locked through staking. As a result, the circulating supply shrank by around 11%. When demand increases but supply becomes scarce, the price can easily skyrocket.
Current key levels are around $0.15 as support and $0.25 as resistance. If the price can hold above $0.25, the next target could be breaking $0.35. There’s still a lot to be tested, but if everything goes according to plan, it’s not impossible that Conflux will make another surprise in the near future.