- CFX surged 52% after TreeGraph 3.0 upgrade reveal.
- Short squeeze liquidated $7.4M, fueling rapid bullish breakout.
- Technicals show momentum strong, but RSI warns of correction
Conflux Network’s CFX token witnessed a sudden price explosion after the unveiling of its TreeGraph 3.0 upgrade at a Shanghai conference. The token jumped 52.92 per cent within 24 hours, hitting a high of $0.247 before retreating slightly to $0.2178.
The rally began with a clean breakout above the $0.1425 level, triggering aggressive buying and intense market activity. Trading volume surged by 577.77 per cent, reaching $1.68 billion, reflecting renewed investor interest and liquidity inflow.
A major driver of this explosive price movement was a sudden short squeeze of $7.4 million. Coinanalyze reported overall liquidation of $12 million over the same 24 hours. Pursuers of short trade suffered the major portion of these losses, with long-held $4.5 million getting blown away. Binance led in liquidation volume, followed by OKX and Bybit.
The enforced rush to cover leveraged short positions caused a short leap in price and contributed to a renewed rally. This violent short covering led to a rapid increase through resistance lines, enabling CFX to reach near a quarter dollar.
Source: Coinanalyze
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Technical Indicators Support Momentum but Warn of Caution Ahead
Following the surge, the token entered a temporary consolidation phase, trading between $0.21 and $0.22. This range now acts as a critical zone before another potential breakout. If buyers regain strength and push CFX above $0.25 with volume support, the following targets lie between $0.27 and $0.30.
Technical indicators highlight both strong momentum and possible risk. MACD is bullish, and its line maintains its position above the signal line (0.02386/ 0.01124). A climbing histogram also augurs well for further buying pressure in the short term.
However, the current RSI reading shows the index to be overbought at 90.88, with the probability of immediate correction. A slackening of the pace would lead to a decline before $0.18 and an opportunity to retest the level of $0.15.
Source: Tradingview
The announcement of TreeGraph 3.0 played a key role in the rise of the price of CFX, which was enhanced by massive short liquidations. As the token consolidates after a 52 per cent surge, market participants are watching closely for signs of a breakout or a correction in the coming sessions.
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