2023-3-22 18:00 |
The Conflux (CFX) price could be reaching the top of an upward movement that started at the beginning of the year. If so, a sharp correction will follow soon.
The CFX price has increased since the beginning of the year. While the rally stalled in February, the price regained its footing on March 11 and reached a new yearly high of $0.49 on March 19.
However, the high was combined with bearish divergence in the daily RSI (green line). Such divergences often precede downward movements.
Moreover, the price seems to be in the fifth and final wave of the increase that started at the beginning of the year. So far, the move has led to a 2,000% increase. As a result, it is possible that a decrease will follow.
If that occurs, the Conflux price could fall to the 0.618 Fib retracement support level at $0.20. This is also in wave four territory, making it a likely level for a bottom.
On the other hand, if the increase continues, the next resistance would be at $0.80.
CFX/USDT Daily Chart. Source: TradingView When Will Conflux (CFX) Price Reach a Top?The technical analysis from the six-hour time frame shows that the CFX token price could be trading inside an ascending wedge. The ascending wedge is considered a bearish pattern, meaning that it often leads to breakdowns. In the context of the previous wave count, this would fit as part of an ending diagonal. If correct, the Conflux price today would be bullish, starting the increase toward $0.51.
Similar to the daily time frame, the six-hour one shows a bearish divergence in the RSI (green line), supporting the possibility that the price will soon reach a top.
The most likely area for a top would be at $0.51, found by the 1.61 external Fib retracement of the most recent drop. This would complete the entire wave count and could then lead to a sharp fall.
However, if the CFX price decisively breaks out from the ascending wedge, it would invalidate the bearish forecast and could lead to an increase toward $0.80.
CFX/USDT Six-Hour Chart. Source: TradingViewTo conclude, the most likely CFX price forecast is an increase toward $0.51 followed by a sharp drop. This would confirm that the upward movement that started at the beginning of the year has come to an end. However, a close above $0.51 would invalidate this bearish outlook and could lead to an increase toward $0.80.
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The post After a 2,000% Increase, Is Conflux (CFX) Bull Rally Coming to an End? appeared first on BeInCrypto.
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