Conflux (CFX/USD) price rose for the second straight day as cryptocurrencies bounced back. It jumped to a high of $0.2093, which was about 47% above the lowest level last week. According to Binance, CFX is the best-performing cryptocurrency on Monday. The others are Synthetix (SNX), Alchemy Pay (ACH), and Maker (MKR), which have risen by 30% in the past 24 hours.
Federal Reserve rate hikes
The main reason why Conflux price is soaring is the ongoing bets that the Federal Reserve will not be as hawkish as previously expected. Most analysts believe that the Fed will be more cautious in the coming meetings considering that the situation in the market is changing.
Data published on Friday showed that the American labor market is still strong, with the economy adding over 300k jobs in February. The unemployment rate is stuck at about 3.6% while wage inflation is easing. Analysts believe that America’s inflation remained at an elevated level in February.
In a note, analysts at Goldman Sachs believe that the Fed will hike rates by 0.25% this month, down from the previous estimate of 0.50%. This view is shared by analysts at other key banks like JP Morgan and ING.
In most periods, cryptocurrencies tend to do well in a period when the Fed is less hawkish. This explains why investors are buying coins like Bitcoin and Conflux. Another reason is that American regulators said that all SVB depositors, including Circle, will get their money. Circle’s USD Coin, lost its peg during the weekend after it emerged that the company had over $3 billion in SVB.
Conflux has made headlines in the past few months. Its most important news was that it had raised $10 million from DWF Labs. It also integrated in China’s version of Instagram.
Happy to share the latest strategic raise by @DwfLabs supporting @Conflux_Network to expand, innovate, and create a barrier-free blockchain ecosystem!https://t.co/onUA60wLQC
— Conflux Network Official (@Conflux_Network) March 1, 2023
Conflux price prediction
CFX chart by TradingView
The daily chart shows that the CFX price has been in a strong bearish trend in the past few weeks. In this period, it managed to move below the 61.8% Fibonacci Retracement level. This sell-off has eased in the past two days, which has pushed the coin’s price above the 50% retracement level. It remains above the 50-day exponential moving average.
Therefore, Conflux will remain positive as long as it is above the 50-day moving average. If this happens, Conflux price will likely continue rising as buyers target the key resistance level at $0.25. A move below the support at $0.170 will invalidate the bullish view.