Uncertainty looms over Conflux as analysts ponder whether CFX token could shatter its $0.23 resistance barrier.
In the world of cryptocurrency trading, the market structure of Conflux [CFX] is currently favouring the buyers, despite a recent consolidation phase. This consolidation, evident in the past ten days, resembles a symmetrical triangle pattern, a common occurrence in financial markets.
A symmetrical triangle pattern in CFX/USDT trading indicates a consolidation phase where the price is making higher lows and lower highs, compressing into a narrowing range. This pattern generally signals that a significant price breakout or breakdown is imminent, but it does not predict direction by itself—it can break bullish or bearish depending on market momentum.
The 2-week liquidation heatmap provides additional insights into potential price movements for Conflux. The 2-week liquidation heatmap shows that the $0.18 and $0.236 levels are the next key magnetic zones for Conflux. These magnetic zones line up very well with the symmetrical triangle pattern.
Regarding key resistance levels for Conflux (CFX) to break after the symmetrical triangle:
- While exact resistance levels for CFX/USDT depend on recent price data, typical trading strategy measures targets by the height of the triangle pattern added to the breakout point.
- Key resistances usually include previous swing highs near or just above the triangle's upper boundary.
In brief, for CFX specifically, the $0.218 and $0.23 levels, marked in red, are the key resistance levels for Conflux to break. A move to $0.24 and higher is likely in the coming days due to the close proximity of the magnetic zone to the price.
However, it's important to note that heightened trading volume is typically associated with the Conflux [CFX] triangle pattern. There is a small chance that CFX will test the lower trendline and dip below it before moving higher. Traders need to watch out for volatility in Conflux [CFX] due to the current market structure.
Once these levels are flipped to support, swing traders can look to enter long positions. Swift price breakouts often follow the reduction in volatility as seen in the Conflux [CFX] triangle pattern.
On July 29th, Conflux [CFX] saw an immediate retracement back to $0.18. The $0.18 level, where the lower trendline is, should not cause concern for traders. The price of Conflux [CFX] reached a swing high of $0.28 on July 29th.
In conclusion, the symmetrical triangle pattern in the price action of Conflux [CFX] suggests a potential bullish breakout in the near future. Traders should closely monitor the price action at key resistance levels and be prepared for increased volatility as Conflux [CFX] moves through this critical phase.
- The symmetrical triangle pattern in CFX/USDT trading, evident in the past ten days, indicates a consolidation phase where the price is likely to break out or breakdown soon, but it does not predict the direction yet—it can break bullish or bearish depending on market momentum.
- Key resistances for Conflux (CFX) to break after the symmetrical triangle include the $0.218 and $0.23 levels, marked in red, and previous swing highs near or just above the triangle's upper boundary.
- Traders should closely monitor the price action at key resistance levels and be prepared for increased volatility as Conflux [CFX] moves through this critical phase.
- Heightened trading volume is typically associated with the Conflux [CFX] triangle pattern. There is a small chance that CFX will test the lower trendline and dip below it before moving higher, so traders need to watch out for volatility in Conflux [CFX] due to the current market structure.
