One of the best performing tokens of this year is Conflux (CFX): the current price of $0.3132, in fact, has recorded a growth of +1328% in just two months. Furthermore, in the first 23 days of February its value rose by +472%.
The Conflux Network boom, however, is not accidental; on the contrary, it is due to a series of reasons: let's see which ones.
The history of Conflux Network and the Chinese context
Conflux is a project born in 2019 which went on exchange listing at the end of 2020; despite the boom recorded this year, it should be remembered that 2022 ended with a loss of 88%. Conflux is a Chinese permissionless blockchain of the layer 1 type, and its dizzying growth has precise reasons: in essence, Conflux is the only public blockchain (permissionless blockchain) compliant with the current (and particularly stringent) regulations of China.
This is a huge competitive advantage. As an example, the platform was recently chosen by two Chinese telecommunications and media players for important blockchain-based projects: we are talking specifically about Telecom China and Little Red Book (the Chinese Instagram).
The success of Conflux Network, therefore, must first of all be considered in the context of the Chinese government's restrictive policy towards cryptocurrencies and the blockchain; in addition, the massive investments by the government in blockchain technology to increase the efficiency of its services and promote innovation must also be kept in mind.
In this very particular framework, Conflux represents a reliable and secure alternative for Chinese companies that want to use the public blockchain. Furthermore, Conflux is also a performant and scalable blockchain, which is why it is starting to attract the attention of investors and companies from all over the world.
Nonetheless, CFX price is slowing on an early target resistance, which may require a consolidation phase before a possible recovery.
The historical trend of Conflux, between the rise and the role of the news
In the 3 years following its inception, CFX didn't always perform well. Specifically, while in March 2021 the cryptocurrency peaked at $1.75, the subsequent phases saw the curve change downward; this led the cryptocurrency to reach an all-time low on December 19th, reaching just $0.022 per token.
The negative record, obviously, was also the basis for the monster start at the beginning of 2023 (which, as we recall, was +1328%).
We want to underline how strong an impact the role of the news has on this (and other) Altcoin. Proof of this is the fact that the price of CFX increased by 90% on January 26, exactly two days after Conflux released the announcement of the partnership with Little Red Book.
Another important price pump occurred recently following the announcement of the agreement with China Telecom, the country's second largest telephone operator.
The future of CFX in the near term
At present, CFX price is stalling at the $0.32/$33 target area. If it does not exceed this limit, it is possible that a retracement phase as violent as the ascent phase will begin; in this forecasting framework, a first support area stands at $0.2350, while a second between $0.1950 and $0.20.More optimistic estimates, however, predict a rise in the price of 132.17% by the end of the month, which would allow the cryptocurrency to reach $0.685.