Conflux broke out of a multi-month descending channel and reached a five-month high of $0.064. The move coincided with China's reported call for a national blockchain network, though the source says it found no confirmed Conflux role in that plan.
Conflux (CFX) bounced back from $0.047 and broke out of a multi-month descending channel. The token held $0.05 before climbing to a five-month high of $0.064.
At press time, Conflux traded around $0.0604, up 17% on the daily charts. Trading volume rose 1,071% to $157 million over the same period.
China's blockchain call puts Conflux in focus
The Chinese Communist Party and State Council called for a national blockchain network as part of a broader economic blueprint. The proposal also targeted an integrated computing power network.
Conflux describes itself as China's only regulatory-compliant public, permissionless blockchain, which could explain renewed investor interest. However, the source notes that the supplied evidence did not confirm a Conflux role in the proposed network.
Derivatives and spot demand climb
On the derivatives side, derivatives volume climbed 2,007% to $449 million, while open interest rose 44% to $44 million. According to the source, this indicated increased participation, with traders taking leveraged bets.
On the spot side, buy volume rose to 256 million on October 10 before dropping to 37 million on October 11. The Buy Delta was positive at around 24 million.
Key levels for CFX
The Relative Strength Index formed a bullish crossover and rose to 68. The source says that setup has often preceded a trend extension.
If demand holds, Conflux is likely to extend the rally and flip $0.07, leaving $0.077 as the next significant resistance. But if speculation around China's decree fades, the price could drop toward $0.055.
Source: AMBCrypto
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