China’s only public blockchain, Conflux, sees CFX price skyrocket 1,300% in 2023

Conflux Network (CFX) is up nearly 500% in the past week, with CFX emerging as one of the best-performing crypto assets in 2023 as China appears to be warming to cryptocurrency trading

What is Conflux Network?

Interestingly, Conflux Network, also known as Shanghai Tree-Graph Blockchain Research Institute, is the only regulatory-compliant, public and permissionless blockchain in China. Conflux is a layer-1 blockchain operating on a hybrid proof-of-work and proof-of-stake mechanism.

CFX’s price has rallied nearly 1,335% year-to-date (YTD) to reach $0.3254 as of Feb. 24, its highest level in 14 months. In comparison, the combined market capitalization of crypto assets has surged approximately 45% YTD.

f4eeca5f 5f20 489a b8f0 ff67f3d1feb1
CFX/USD daily price chart. Source: TradingView

Why is Conflux Network’s price rallying?

Strong fundamentals have primarily driven the CFX price higher in 2023.

For instance, CFX’s price increased by more than 90% on Jan. 26, two days after Conflux Network partnered with Little Red Book, a China-based social media platform, to provide nonfungible token services.

The partnership enabled Conflux Network to bring its services to Little Red Book’s 200 million users.

d59d830f a3fb 414c 82c9 09b1d2909f3d
CFX/USD daily price chart. Source: TradingView

Similarly, on Feb. 15, Conflux Network partnered with China Telecom to develop and pilot a blockchain SIM (BSIM) card service in Hong Kong, thus gaining exposure to the latter’s 350 million users. CFX’s price has rallied 450% after the announcement.

The high-profile deals also helped boost queries for keywords related to Conflux Network, thus hinting at an increasing retail interest. For instance, the worldwide Google Trend score for the keyword “Conflux Network” reached 93 and 100 in the Jan. 22–28 and the Feb. 12–18 periods, respectively.

f24d3067 07e8 49ea 9c3d 78950e9ff7cb
Interest over time for the keyword “Conflux Network” worldwide. Source: Google Trends

Social media was mostly focused on Conflux Network’s major partnership deals, according to data from Santiment show below.

3cdc77f3 7770 4926 b8a0 c54d2f57c0de
Social media volume for Conflux Network. Source: Santiment

In addition, the CFX market bull run also comes ahead of the vote on its token burn proposal sometime this week.

So far, the buzz for Conflux Network is palpable. However, that does not safeguard CFX’s price from undergoing a massive correction in the coming weeks.

CFX price rally is “overbought”

From a technical standpoint, CFX’s ongoing price boom has left it extremely overbought.

On both daily and weekly charts, CFX’s relative strength index has crossed above 70, which hints that its ongoing uptrend is near exhaustion. In addition, the Conflux Network token is testing the $0.28–$0.41 range as resistance, which served as support from May to November 2021.

63483a48 7cbe 4c84 b080 04c9f52fa41e
CFX/USD weekly price chart. Source: TradingView

A pullback from the resistance area could have CFX’s price fall to $0.097–$0.141 as its primary downside target. The range also coincided with the token’s 50-week exponential moving average (50-week EMA; the red wave) near $0.108, down about 65% from current price levels.

Conversely, a decisive breakout above the $0.28–$0.41 range could have CFX’s price rally toward $0.84, its resistance from the May–September 2021 session.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.