Conflux [CFX] bounced back from $0.047 and broke out of a multi-month descending channel. The token held $0.05 before climbing to a five-month high of $0.064.
At press time, Conflux traded around $0.0604, up 17% on the daily charts. Over the same period, Trading Volume surged 1,071% to $157 million, reflecting a sharp increase in market activity.
The rally coincided with China’s reported call for a national blockchain network, putting Conflux’s domestic positioning back in the spotlight.
Is China’s blockchain push lifting Conflux?
The Chinese Communist Party and State Council called for a national blockchain network as part of a broader economic blueprint.
The proposal also targeted an integrated computing power network, linking blockchain infrastructure with the country’s digital development plans.
Conflux [CFX] describes itself as China’s only regulatory-compliant public, permissionless blockchain. That positioning could explain renewed investor interest following the announcement.
However, the supplied evidence did not confirm a Conflux role in the proposed network. For traders, the immediate question is whether the policy excitement can sustain demand after the initial rally.
Market demand for the asset follows suit
Notably, encouraged by recent developments, investors rushed into the market to position themselves strategically.
On the derivatives side, for example, Derivatives Volume climbed 2,007% to $449 million. At the same time, Open Interest surged 44% to $44 million.
Such a massive jump in both OI and volume indicated increased participation with traders taking leveraged bets. Thus, investors aggressively opened new positions, both short and long.
On the spot side, traders also rushed to accumulate. On October 10, Conflux’s buy volume rose to 256 million before dropping to 37 million on October 11.
At the same time, the Buy Delta was positive at around 24 million, a clear sign of aggressive spot accumulation.
Historically, strong demand in both the spot and derivatives markets has preceded further gains on the charts.
Can CFX extend the rally?
Conflux made a clear breakout as bullish pressure intensified. Looking at the Relative Strength Index (RSI), it formed a bullish crossover and rose to 68, confirming this trend shift.
At these levels, the RSI indicated rising buyer dominance. Often, such a setup has preceded a trend extension.
Therefore, if the recent demand holds, Conflux is likely to extend the rally and flip $0.07, leaving $0.077 as the next significant resistance.
However, if speculation around China’s latest decree fades, we could see another drop toward $0.055.
Final Summary
- Conflux [CFX] broke out of a multi-month descending channel, surging 17% to a five-month high of $0.064.
- China’s State Council and the Communist Party called for the construction of a national blockchain network as part of its economic strategy.