NEW DELHI (CoinChapter.com) — Conflux Network (CFX) extended its YTD gains as it rallied on news of a partnership with China Telecom. CFX price rallied 488% since Feb 15 to form a daily high near $0.325 on Feb 20.
Conflux, the only state-backed blockchain platform in China, shared that the partnership would focus on developing blockchain-enabled sim cards. The firm claimed that the blockchain sims, or ‘BSIM‘ would be the “largest blockchain hardware product ever seen globally.”
The blockchain firm stated that China Telecom would launch a pilot BSIM project in Hong Kong. However, the announcement refrained from sharing the exact date or quarter of the launch.
Furthermore, Conflux highlighted that the BSIM cards would integrate the blockchain’s ‘Tree-graph‘ consensus mechanism. The blockchain network also claimed that while BSIM cards store a user’s public and private keys, they can “carry out digital signatures in a way that the private key does not exit the card.”
Conflux Network has completed the BSIM R&D and is currently testing the prototype on its mainnet, the firm said in its announcement.
On Twitter, crypto users reacted differently to the announcement, with some concerned with government surveillance via the BSIM cards. Others were more optimistic, claiming the partnership would allow CFX access to China Telecom’s over 390 million subscribers.
CFX Price Reaches Multi-Month High
The ongoing rally helped CFX extend its YTD gains to more than 1,400%, outperforming several of its peers. On Feb 20, the Conflux Network token spiked over 60% from the day’s low of $0.203 before bears started booking profits.
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CFX price charted a multi-month high on Feb 20, reaching a level the token last saw in Nov 2021. While the rally is impressive, long upper wicks on CFX’s daily candles suggest that bears are selling on every price spike.
Additionally, the CFX token price action has resulted in Conflux Network’s 100-day EMA (blue wave) becoming poised to break above its 200-day EMA (green wave) to form a bullish pattern called the Golden Cross.
Traders believe the pattern indicates positive market sentiment and often consider it a buy signal. Hence, if CFX price forms the pattern, the token might challenge resistance near $0.305.
A break and hold above the immediate resistance could help CFX price rise to resistance near $0.366 before downside corrections pare gains. Meanwhile, the relative strength index has become overbought for CFX token, clocking at 92.78 on the daily chart.
Overbought RSI levels have traditionally been a sell signal for traders, as they often precede a bearish trend reversal. Should the CFX price rally fail, the Conflux Network token might end up testing its support near $0.225.
Breaching the immediate support level could force CFX price to fall to $0.15 before recovering.
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