Conflux ($CFX) Declines 15% Overnight as RSI Approaches Oversold Levels – Potential Rebound or Further Drop?

Conflux ($CFX) experienced a 15% decline overnight as traders took profits following a significant 91% increase over the week. Attention is now focused on the $0.185 support level to assess whether this is a healthy correction or signifies the conclusion of its parabolic rise.

The downturn follows a remarkable 52% surge in $CFX, fueled by excitement surrounding Conflux’s Tree-Graph 3.0 upgrade and partnerships related to China-focused stablecoins. However, with the RSI approaching oversold conditions and the MACD turning bearish, the token’s future movement depends on whether buyers can maintain crucial support.

Source: CoinGecko

Conflux Focuses on Tree-Graph 3.0 and a Distinct Yuan-Pegged Stablecoin

Despite the selloff, Conflux’s fundamentals remain robust, featuring the network’s innovative Tree-Graph consensus, which integrates Proof-of-Work for security with a parallelized PoS overlay for finality, enabling up to 15,000 transactions per second—significantly surpassing standard Layer-1 throughput.

Founded in 2018 by Turing Award laureate Dr. Andrew Yao and his team, Conflux Network is a permissionless Layer-1 blockchain aiming to connect “creators, communities, and markets” across various borders and protocols.

The blockchain’s approach focuses on tokenizing real-world assets, facilitating cross-chain bridges, and exploring metaverse/Web3 projects.

Recent advancements have acted as triggers for both bullish movements and profit-taking.

The announcement of Conflux’s Tree‑Graph 3.0 mainnet upgrade at the Conflux Technology & Ecosystem Conference for late July and early August 2025 has been a significant event, leading to a price increase of over 52% following the news.

Additionally, Tree-Graph’s AI agent support and parallel processing are designed to attract developers to next-generation DeFi, gaming, and enterprise dApps.

In conjunction with this technical advancement, Conflux has introduced axCNH, an offshore yuan-pegged stablecoin created in collaboration with AnchorX and Eastcompeace, aimed at facilitating cross-border payments within Belt and Road economies.

Conflux $CFX to Support Offshore Yuan-Pegged Stablecoin#Chinese Layer 1 blockchain @Conflux_Network has partnered with AnchorX and Eastcompeace Technology to develop offshore #yuan-pegged stablecoins for use in Belt and Road Initiative (BRI) countries pic.twitter.com/qmLvmVutjd

— TOP 7 ICO | Crypto News & Analytics (@top7ico) July 21, 2025

Collaborations with McDonald’s China and the Shanghai government are exploring digital collectibles and immersive experiences.

Great collaboration with ⁦@McDonalds⁩ China. #NFTs https://t.co/7mgMhSyqwE

— Conflux Network Official (@Conflux_Network) October 10, 2021

Currently, Conflux secures $15.81 million in Total Value Locked across its smart contract platforms, with 24-hour DEX volume around $8,700, as reported by DefiLlama.

$CFX Retraces After Testing Significant Highs Near $0.248

$CFX/USDT has entered a corrective phase following a vigorous rally that peaked on Sunday, July 20, at $0.248, a level it briefly revisited on Monday, July 21.

This double-test of resistance established a ceiling that sellers promptly defended, resulting in a series of red hourly candles as the market retraced toward the $0.188 region where it is currently trading.

$CFX/USDT price chart, July 22 (Source: TradingView)

This decline is not unexpected, as it follows a steep ascent that began around July 18, when the token was priced below $0.13, continuing to rise until reaching those highs on the 20th and 21st.

On shorter timeframes, the selloff reveals distinct volume clusters.

Footprint data indicates significant negative deltas during the early sessions on July 22, with one hour recording a delta of –16.42 million on a total turnover of 63.59 million. These figures reflect aggressive market selling as traders secured profits near the peaks, while subsequent candles show diminished but consistent selling pressure.

Although there have been instances of buying activity, primarily deltas of +1.43M and +1.15M in later candles, these efforts have yet to disrupt the prevailing downward trend.

Furthermore, the RSI has dropped to the mid-30s, signaling a decline in bullish momentum and approaching oversold conditions on shorter timeframes. Meanwhile, the MACD has reversed, with its histogram contracting and lines now positioned below the baseline, confirming that momentum currently favors sellers.

After two unsuccessful attempts to surpass $0.248, buyers have lost momentum, leading early longs to unwind their positions.

Unless the price can reclaim and maintain levels above $0.20 with new volume, caution is advised. The $0.185–$0.188 range now serves as a near-term pivot, and if upheld, it could provide a basis for another upward attempt once sentiment stabilizes.

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