In a detailed market analysis shared by CryptoBusy, a well-regarded source for cryptocurrency technical and market insights, Conflux (CFX) shows signs of a technical breakdown. This news comes at a time when the blockchain platform has been making strides in terms of market performance. However, the recent technical indicators suggest that Conflux could be heading towards a volatile phase, shadowing the larger market sentiment driven by Bitcoin’s movements.
#Conflux BREAKDOWN! Shared this an hour ago. 📉
— CryptoBusy (@CryptoBusy) November 2, 2023
I will share my confluences. Make sure to bookmark this so you won’t forget and apply it on your trades.
Here it is:
🔸 #Bitcoin breaking down (Correlated move)
🔸 $CFX bearish divergence on the price and MACD
🔸Trendline… https://t.co/G4ms6dFeDa pic.twitter.com/tPMQZjHoYB
The CryptoBusy report indicates that the ongoing breakdown in Bitcoin’s price is having a correlated impact on Conflux. This pattern is not unusual in the crypto space, where Bitcoin’s volatility often sets the tone for the broader market, affecting the valuation of altcoins. Per the analyst, a closer look at Conflux’s trading charts reveals a bearish divergence between the asset’s price trajectory and the MACD indicator, typically a precursor to a potential downturn in price.
Adding to the bearish outlook, a trendline breakdown has been confirmed, bolstering the prediction of a continued decline. This is further supported by the RSI on the 15-minute chart breaching below the midline of 50, signaling an early entry for those looking to capitalize on the bearish trend.
The bearish sentiment is echoed across various time frames, with the daily, 4-hour, and 1-hour charts all flashing red. This uniformity across time frames adds weight to the bearish perspective.
Despite the cautionary technical indicators, Conflux’s market data, as reported by CoinMarketCap, presents a resembling picture. The cryptocurrency is witnessing a 9.60% drop over the last 24 hours, trading at $0.1493 with a volume of over $60 million. Conflux holds the 73rd rank in market cap, valued at around $502 million.
The current technical and market analyses indicate a challenging period ahead for Conflux (CFX), as it appears to succumb to the broader bearish trends led by Bitcoin. Despite its previous market gains, the alignment of multiple bearish indicators, such as the bearish divergence on the MACD and the RSI drop below the neutral 50 threshold, suggest that investors may be bracing for further downturns.
