Conflux (CFX) price may have reached the top of the uptrend that started at the beginning of the year. If so, a sharp correction will soon follow.
The CFX value has increased since the beginning of the year. While the rally stalled in February, the price resumed on March 11 and reached a new yearly high of $0.49 on March 19.
However, the higher was paired with a bearish divergence in the daily RSI (green line). Such divergences often precede downward movements.
Furthermore, the price appears to be in the fifth and final wave of growth that began at the beginning of the year. So far, the move has resulted in a 2,000% increase. As a result, it is possible that a decline will follow.
If that happens, Conflux price could decline further towards the $0.20 Fibonacci retracement support level at $0.618. It is also in wave four territory, making it a potential level for a bottom.
On the other hand, if the rise continues, the next resistance lies at $0.80.
When will the price of Conflux (CFX) top out?
Technical analysis from the six-hour time frame suggests that CFX Token price may be trading inside a rising wedge. The ascending wedge is considered a bearish pattern, which means it often leads to a breakdown. In terms of the previous wave count, this would fit as part of the last diagonal. If true, then the price of Conflux will start a bull run today, starting its move towards $0.51.
Similar to the daily time frame, the six-hour RSI (green line) is showing a bearish divergence, supporting the possibility that the price will soon top.
The most likely area for a top would be $0.51, found by the 1.61 external Fibonacci retracement of the most recent decline. It will complete the full wave count and then may lead to a sharp decline.
However, if CFX price decisively breaks out of the rising wedge, it will invalidate the bearish forecast and may head towards $0.80.
To conclude, the most likely CFX price forecast is a sharp decline followed by a move towards $0.51. This would confirm that the upward momentum that started at the beginning of the year has come to an end. However, a close above $0.51 will invalidate this bearish outlook and a move towards $0.80 is possible.
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