FRAX (FXS) Coin Price: Will Bulls Spike Again From the $0.9663?

• FRAX token price has recently given two bullish spikes targeted up to $1.2483.
• The moving averages are giving strong selling signals.

Frax protocol is an implemented idea of an American software developer Sam Kazemian. The developer first came up with the idea of fractional algorithmic stablecoin in 2019. It is a unique community-driven stablecoin in which 60% of the supply of FXS is issued over a year to the liquidity providers and yield farmers.

Recent Price Behaviour of the Frax Stablecoin

On November 2023, the FXS coin price gave a major bullish spike up to the $1.8901 level. The price completed the previous target price of $1.6741 and $1.8799 levels. After that session, it made a bearish spike to the $0.8455 level.

The important part is that the price previously reached more than 80% of its value and the next day it only spiked down to 11%, leaving some bears waiting. After making regular candles the Frax price made three other short bullish spikes.

However, the spikes could be larger than the previous one of $1.8901, if only the price has covered the sell side spikes with 2 or more movements with approximately 17%-18%. The price is currently moving slowly with a high probability of short selling.

As per CoinMarketCap statistics, the volume of Frax rose 45.31% in the last 24 hours and ranked 291st among all the 8,808 active cryptocurrencies. Frax’s all-time low price is at $0.7805 and currently performs 28% above it.

Technical Analysis of the FRAX/USD

The Frax coin price is moving below the 50 and the 200-Day EMAs reflecting a negative trend.

The FRAX/USD price is consolidating between $0.9985 and $0.9663 levels which also are the initial support and resistance levels. In the last two trading sessions, the price made a big rejection candle from the $0.9985 upper range.

This rejection candle reflects the fear and greed sentiments in the current session. However, the technical analysis suggests that the price may make a negative spike up to 17% down from the current price of $0.9844 then it will continue to spike up.

The relative strength index (RSI) is showing neutrality over the current Frax coin price. However, the RSI failed to cover all instant spikes whether it is negative or positive. The RSI is sloping slightly below the 50-mark middle band.

Conclusion

Overall, the Frax coin price is moving in a sideways market. It is making some instant high and low spikes where the traders and investors are booking profits. The moving averages are giving strong sell signals. As per the technicals, the price may drop 17% in the form of negative spikes, after which it may turn to the other side.

Technical Levels

• Resistance Levels: $0.9985, and $1.0580
• Support Levels: $0.9663, and $0.9036

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading crypto assets comes with the risk of financial loss.