Conflux (CFX) has recently experienced a significant price increase after several days of decline. According to data from CoinMarketCap, CFX has gained 11.39% in the last 24 hours, making it the top gainer of the day. So, what is the reason behind this price surge?
The Bank of China’s announcement regarding SIM card NFC payments has caused excitement within the Conflux community. On July 10th, the Bank of China revealed that it would begin testing SIM card-bound payments with the digital Renminbi, commonly known as digital Yuan, starting from July 11th and yesterday.
According to the bank, this program is being conducted in collaboration with telecommunication giants China Telecom and China Unicom.
The aim of the project is to enable payments using Near Field Communication (NFC) protocol and a technology known as “Super SIM cards.” Essentially, users can conduct digital Yuan payments by bringing their mobile phones in contact with specific payment terminals.
However, after this news surfaced on mainstream social media channels today, there was a wave of excitement within the CFX community, with some suggesting that the Bank of China’s recent step could drive the future adoption of CFX.
To provide some context, Conflux Network had already signed a partnership with China Telecom in May 2023 for the development of a blockchain-based SIM card (BSIM). Against this backdrop, some CFX fans believe that Conflux Network will play a significant role in the new SIM card-based e-CNY payment system.
The excitement within the CFX community resulted in a positive price movement, with CFX rising by 11% this morning and reaching a high of $0.2031. Prior to this price increase, CFX’s market price had dropped from $0.197 to as low as $0.175 in the past seven days.
At the time of writing this article, CFX is currently trading at $0.201, with a loss of 0.20% in the past hour. However, the token’s trading volume has increased by 135.79% and is estimated at $75.4 million. With a market capitalization of $617.6 million, Conflux is the 67th largest cryptocurrency in the market.
CFX Price Analysis and Prediction
Analyzing the 4-hour chart of CFX, the token appears to be heading towards a resistance zone at $0.214. If the asset’s upward momentum is sufficient to break through this zone, the price could rise to $0.289, marking the next support zone.
However, a strong bearish force in the $0.214 price zone will cause CFX to fall and retest the support level of $0.171. Nevertheless, it is important for long-term traders to note that the CFX market is currently in a downtrend that dates back to March.
Selected image from Conflux Network, chart from Tradingview.
