Conflux (CFX) Soars as “TreeGraph 3.0” Upgrade Sparks $7.4 Million Short Squeeze

• Conflux (CFX) has surged over 52% in 24 hours after announcing its new “TreeGraph 3.0” upgrade
• The rally was intensified by a massive short squeeze that liquidated $7.4 million in bearish bets
• While momentum is strong, the RSI has reached an extremely overbought level of 90, signaling caution.

Conflux Network’s token $CFX, sometimes referred to as the “Chinese Ethereum,” rose over 45% to $0.2138 after TreeGraph 3.0 was introduced at a conference in Shanghai. The upgrade includes a target of 15,000 TPS, AI agent integration, EVM compatibility, and reduced transaction confirmation times. Conflux then witnessed an explosive price rally in the past 24 hours, gaining 52.92% and reaching a high of $0.247 before retreating slightly to $0.2178.

The surge followed a sharp breakout from the $0.1425 level, sparking intense market activity and heavy liquidations. CFX showed strong upward momentum after bouncing from the $0.1425 support, climbing steadily to test the $0.247 resistance. However, after hitting that level, the token consolidated between $0.21 and $0.22.

A 577% volume surge signals intense activity

This range now acts as a temporary resting zone as traders prepare for the next big move. Significantly, the 24-hour volume soared to $1.68 billion, marking a 577.77% increase. This surge in liquidity signals growing market confidence and sustained buying interest.

Moreover, the volume to-market cap ratio reached 152.83%, suggesting rapid turnover and heightened speculation. If CFX breaks above $0.25 with volume support, it may target the $0.27 to $0.30 range. However, if momentum fades and the price dips below $0.18, a deeper correction toward $0.15 remains possible.

A $7.4M short squeeze explains the explosive move

In the same 24-hour window, liquidation data showed a total of $12 million wiped out from perpetual contracts. Short positions bore the brunt, accounting for $7.4 million, while long trades saw $4.5 million in losses. 

Binance led the liquidation volume, followed by OKX and Bybit. This imbalance reveals aggressive short covering, which may have accelerated the price rally. Besides, the absence of futures liquidation confirmed that the movement was largely driven by leveraged spot markets.

Conflux Network (CFX) witnessed an explosive price rally in the past 24 hours, gaining 52.92% and reaching a high of $0.247 before retreating slightly to $0.2178. The dramatic surge followed a sharp breakout from the $0.1425 level, sparking intense market activity and heavy liquidations. 

MACD and RSI Indicators Signal Diverging Risks

Technical indicators point to strong momentum but also warn of near-term risks. The MACD line stands at 0.02386, staying above the signal line at 0.01124. Additionally, the histogram remains positive and rising, reinforcing bullish strength. 

However, the Relative Strength Index (RSI) has pushed into extreme overbought territory, now sitting at 90.88. A level this high often suggests that a price is overextended and could be due for a pullback or consolidation.

CFX key price levels to watch now

With the price now in a temporary resting zone, traders are watching key levels. For the rally to continue, bulls need to push CFX above the $0.25 resistance with strong volume, which would open up the $0.27 to $0.30 range as the next target. 

However, if momentum fades, a drop below $0.18 could signal a deeper correction back toward the $0.15 breakout point.