#CFX Market sentiment and fear of missing out (FOMO) will lead to a rush of buyers into the market once favourable information is released, especially short-term traders and trading bots, who seek quick profits.

A rapid price surge can trigger "fear of missing out (FOMO)" emotions, causing more people to recklessly chase high prices and further drive up prices, creating a short-term "irrational exuberance."

In the cryptocurrency market, large-capital "whales" have the ability to create the illusion of rising prices by buying in large quantities, attracting retail investors to follow suit, and then selling their chips at the peak, leading to a price crash, from which they profit.

The sudden surge and subsequent drop of CFX this time is highly likely driven by market sentiment ignited in a short period due to the possibility of China allowing the issuance of stablecoins pegged to the Renminbi. A large volume of buying pushed the price up rapidly. However, when the price reached key resistance levels and local highs, a massive sell-off from profit-taking and trapped positions led to the price retreating.

FOMO buying high