Conflux (CFX) Market Update: Is Now a Good Time to Invest?

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Conflux (CFX) Market Update: Is Now a Good Time to Invest?

In Brief

  • The price of Conflux (CFX) has soared to $0.09, up by 4% over the past 7-days.

  • For comparison, the entire market is down by -0.4%.

  • 10 previous historical occurrences of the engulfing pattern candle indicator suggest that prices could be headed lower.

Conflux has jumped sharply recently, and unfortunately for investors historic price action suggest that the market is heading lower.

It is impossible to say exactly what will happen in the future, but we can study the past for some guidance. Stack has looked at the past indicators for Conflux (CFX) under similar conditions to try to determine where prices might be heading.

Specifically, we looked over 10 prior occurrences where the engulfing pattern candle was detected and here is what we found.

Why Conflux's Price Could Move Lower

Essentially, due to multiple similar occasions before. That's to say, we have seen this situation before.

Over 10 past occurrences, Stack found that 100% of the time the price increase by a median -14.69% over the following 14 days.

For example, on April 19th, 2021 we saw this indication and a price move of Conflux move by 0%, only to then move by -10.3% over the following 14 days.

Conflux chart

Chart displays the historic episodes when this indicator occurred with the price.

What does this mean for investors?

This is only one, data-backed signal, based on a handful of previous historic periods. Many of factors can influence the price of any investment.

Crypto is no different. Social media, developer activity, the number of exchanges as well as on-chain activity are all factors that can affect the price of any crypto project. All of these factors are considered when Stack ranks crypto projects.

{If you feel that other factors, including the global crypto market, are favorable assuming the suggested 7-day holding period. Then it could represent a good trade, or a good entry point for longer term investors. We recommend that you do your own research (DYOR) before making any investment decisions. |It's critical to consider these other factors

What other factor could be moving the price of $CFX?

Lot's of factors can influence the price of any investment. Here are just a few that could impact the price of Conflux.

The broader market's

The crypto market is also down by a median -0.4%. Many cryptos are highly correlated, especially to Bitcoin and Ethereum. So this is likely affecting the price.

It's also worth researching the global macroeconomic environment. As crypto trading has become more widespread, it is increasingly becoming correlated to equities as well.

Developer activity

How active have the developers for Conflux been?

Over the past 4 weeks there have been 184 commits on Conflux's Github account. This compares to an average of 2 commits per week.

Spotting significant changes in developer activity can highlight potential new products being worked on and identify abandoned projects that might be in decline.

Social media

Social media can have a powerful impact on crypto prices. Single tweets can often move markets. It's difficult to gauge sentiment just by browsing Twitter, but you can use products like Stack to monitor the growth of a project's followers.

Conflux's Twitter followers have risen by 2% over the past 7 days. You can view stats for other networks in the full report for Conflux.

Important Disclaimer: This material is for informational purposes only. None of the material or any material on the website should be interpreted as investment advice. Stack does not make any express or implied warranties, representations or endorsements whatsoever with regard to the material or related information. In particular, you agree that Stack and it's owners assume no warranty for the correctness, accuracy and completeness of the material.