Conflux Price Prediction: CFX Gets Rejected by Resistance, Will It Drop Below $0.41141644?

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The Conflux price pumped more than 3% in the last 24 hours to trade at $0.4408 at press time.

The Conflux Price Gets Rejected by Resistance Again

4-hour chart for CFX/USD (Source: TradingView)

The Conflux price got rejected by the $0.45148330 resistance for a second time over the last 24 hours. As a result, the crypto could be at risk of retesting the immediate support level at $0.41141644. If bears continue to exert sell pressure on the altcoin at this point, CFX could lose the support of this significant mark. As a result, the altcoin could fall to as low as $0.37277816.

This bearish thesis may be invalidated if the Conflux price manages to close a 4-hour candle above $0.45148330 in the coming 12 hours. In this alternative scenario, the crypto may have the technical foundation needed to keep climbing in the following couple of days. This could lead to CFX rising to as high as $0.48984608 in the short term.

Technicals Warn of a Conflux Price Correction

Technical indicators on CFX’s 4-hour chart suggest the Conflux price may drop more in the coming 24 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are flagging bearish.

Although the MACD line is positioned bullishly above the MACD Signal line, the prior is collapsing towards the latter. This could be a sign that CFX’s positive trend is losing steam. Meanwhile, the RSI is on the verge of triggering a major bearish technical flag. Currently, the RSI is looking to cross below its Simple Moving Average (SMA) line. An intersection between these two technical indicators is generally seen as a sign that sellers have gained the upper hand against buyers.

Given the analysis of the Conflux price action and the technical indicators suggesting a potential bearish scenario, here’s a trading strategy that incorporates both the bearish and bullish outcomes:

Bearish Scenario Strategy:

Short Entry Position: Considering the rejection at the $0.45148330 resistance and bearish technical indicators (MACD converging and RSI potentially crossing below its SMA), a short position could be initiated if the price fails to break above this resistance and shows signs of decline. A close of a 4-hour candle below the immediate support level of $0.41141644 could serve as a confirmation signal for entering a short position.
Stop-Loss Order: To manage risk, place a stop-loss order slightly above the $0.45148330 resistance level. This limit protects against unexpected bullish reversals.
Profit Targets: Set the first profit target near the immediate support level at $0.41141644, assuming a retest. If the bearish momentum continues, the second profit target could be set around $0.37277816, where the price could potentially find its next support.

Bullish Scenario Strategy (In case of invalidation of bearish thesis):

Long Entry Position: If the Conflux price manages to close a 4-hour candle above the $0.45148330 resistance within the next 12 hours, it could invalidate the bearish thesis. This event would serve as a trigger to enter a long position, anticipating further upward movement.
Stop-Loss Order: A prudent stop-loss for this scenario could be placed just below the breakout level of $0.45148330 to minimize potential losses in case the breakout doesn’t sustain and the price falls back.
Profit Targets: The first profit target could be set near the short-term potential high of $0.48984608. Traders may want to monitor price action closely beyond this point for signs of continued bullish momentum or reversal to adjust their strategy accordingly.

Key Considerations:

Risk Management: It’s crucial to manage risk by only allocating a small percentage of your trading capital to any single trade.
Technical Analysis Updates: Keep an eye on the MACD and RSI indicators for further confirmation or signs of reversal. Adjust your strategy based on updated technical analyses and price action.
News and Market Sentiments: Be aware of any news or events that could impact market sentiment and, consequently, the price of Conflux. Unexpected news can lead to significant price movements that may not align with technical analysis.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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