Confluence Network (CFX) has risen nearly 500% in the past week to become one of the best-performing cryptographic assets in 2023, despite the gradual warming of cryptocurrency transactions in China.

What is a confluence network?

Interestingly, the confluence network, also known as Shanghai Shutu Block chain Research Institute, is the only regulated, published and powerless block chain in China. Confluence is the first layer of block chain that runs in a hybrid system of work unit proof and interest confirmation.

As of Feb. 24, CFX's share price has risen nearly 1335% so far this year, reaching a 14-month high of $0.3254. By comparison, the total market value of encrypted assets has soared by about 45% since the beginning of the year.

Why does the price of the confluence network rise?

Strong fundamentals are key to driving up CFX prices in 2023.

On January 26th, for example, days after Huanliu's collaboration with Chinese social platform Xiao Hongshu offered irreplaceable tokens, the price of CFX rose by more than 90 per cent.

This strategic partnership allows Conflow Network to bring its services to the 200 million users of Little Red Book.

Similarly, on Feb. 15, in collaboration with China Telecom Network, Hong Kong developed and designed and piloted a blockchain SIM card service project to gain exposure to the latter 350 million users. CFX's shares rose 450 per cent after the announcement.

The high-profile deal has also helped boost the search index for keywords related to confluence networks, suggesting that retail investors are becoming more and more interested. For example, the global Google trend score for the keyword "confluence network" reached 93 and 100, respectively, from January 22 to 28 and February 12 to 18.

According to Santiment, social networks are mainly reflected in the buying and selling of Conflow Network's important partners.

In addition, the big bull market in the CFX market also occurred at some point this week and before the vote on the representative kindling proposal.

So far, it is obvious that there is a heated discussion about the confluence network. However, this does not guarantee that the price of CFX will not be easy to experience large-scale adjustments in the coming weeks.

CFX price increase is "overbought"

From a technical point of view, the continuous rise in the price of CFX has made it extremely overbought.

In the stock market k chart and weekly chart, the relative strength index of CFX is more than 70, which indicates that its continuous upward trend is nearly exhausted. In addition, the Conflow Network OTP has detected the $0.28-0.41 range as friction resistance, which is the support line from May to November 2021.

If adjusted from this friction resistance area, CFX's important decline share price is expected to fall to $0.097 to $0.141. This section is also similar to the 50-week index moving average of tokens around $0.108 (50-day moving average; red waves), down about 65% from the current price level.

Conversely, if CFX prices firmly increase in the range of $0.28-$0.41, it may cause CFX prices to rebound to $0.84, which is also the pressure level since May-September 2021 trading time.