Conflux (CFX) cools down after the Hardfork v3.0.0 information – A pause before the next increase?

Conflux (CFX) has just marked an important milestone in the journey of upgrading the network infrastructure, with the hardfork v3.0.0 – a major improvement expected to be completed before September 1.

This upgrade integrates eight Conflux Improvement Proposals (CIP), categorized into three main groups: enhancing EVM compatibility to promote deeper integration with the Ethereum ecosystem, fixing technical bugs, and refining rules within the Proof-of-Stake mechanism (PoS).

Source: CoinMarketCapAlthough market sentiment is leaning towards a positive direction – with 77.78% of investors showing optimism – the price of CFX has weakened over the past 24 hours. This trend indicates an increasingly clear gap between the expectations of retail investors and the harsh realities of the market.

Cash flow withdrawn from CFX

Contrary to the optimistic mindset of the trading community on the spot exchange, the derivatives investors are showing more caution and pessimism. Many have started to bet on a negative outlook as significant changes are imminent.

According to data from Coinalyze, approximately 11.79 million USD has been withdrawn from the derivatives market, representing a decrease of 19%. This pulls the total value of open contracts down to just 58.8 million USD.

Source: CoinalyzeNotably, long positions using high leverage on Binance have suffered significant losses, with $1.7 million being liquidated. This trend indicates that pessimistic sentiment is increasingly spreading among investors.

This large-scale capital withdrawal coincides with technical signals leaning towards the possibility of the market continuing to adjust downward in the near future.

MACD turns to a downward trend, SAR confirms the downward momentum

The MACD indicator has just formed a “bearish cross” pattern – a classic signal that often precedes strong price declines. Specifically, the green MACD line (0,00282) has crossed below the orange signal line (0,00284), indicating that bearish momentum is prevailing.

Source: TradingViewThe selling pressure does not stop there. The Parabolic SAR indicator has also signaled a reversal with a dot appearing just above the current price, further reinforcing the likelihood of a downtrend.

Although these are only initial signs, if this trend continues, it will confirm increasing selling pressure and open up the possibility for CFX to slide even deeper in the near future.

Can accumulation reverse the downtrend?

Not all investors are pessimistic – on the contrary, many people in the spot market see the current price correction as a golden opportunity to increase their positions.

Data from CoinGlass shows that the accumulation trend has been steadily occurring over the past five days, with a total of 14.23 million USD worth of CFX being transferred into personal wallets.

In just the last 24 hours, there has been a withdrawal of CFX worth 1.76 million USD from exchanges – a familiar sign indicating confidence in long-term prospects. When investors withdraw assets to personal wallets, it often reflects expectations that prices will continue to rise in the future.

Source: CoinGlassThis optimism seems to be not without foundation. Over the past month, CFX has recorded an impressive growth of up to 146%.

If the accumulation trend continues to be maintained, the current correction is likely only temporary - and may become a springboard for a new recovery cycle.

SN_Nour