Frax Share Coin A Big Loser Today. Is FRAX a Goner, Or Primed to Pump?

Updated: 20 July 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Frax Share Coin fell 2.7% in 24 hours with a 40% rise in trading volume likely due to increased short positions in the market. The technicals indicate it’s short-term bullish and long-term bearish, leaving investors in a difficult spot.

Frax Share (FXS) is the governance token of the Frax network. FXS is trading at $5.97 at 4:43 am EST, trading slightly above its 7-day low of $5.83. Despite the generally bearish outlook, FXS will likely recover due to the more positive outlook of FRAX stablecoin today.

FRAX is a stablecoin maintaining a $1 peg. It is the first fractional-algorithmic stablecoin system that is open-source, permissionless, and implemented on Ethereum.

FXS Trading Below 200-Day SMA as Bears Seize Control

FXS is trading in a downtrend trend today despite forming a green candle. It trades above its 50-day Simple Moving Average (SMA), expressing a short-term bullish sentiment. However, it is below its 200-day SMA, a long-term bearish sentiment for the token.

Also, its Relative Strength Index (RSI) value is 45.12 in the neutral zone between the overbought region of 70 and the oversold region of 30. The RSI is retracing slightly to the upside showing a short-term rally today.

FXS Moving Average Convergence/Divergence (MACD) is below its signal line showing a strong bearish signal. Also, the Histogram bars are red, indicating that the bears are controlling the market today.

$5.81 Support Critical to FXS Price Action

FXS is trading above its closest support level of $5.81. The bears pushed its price below the resistance levels of $6.70 and $6.40.

FXS might return to the $5.42 support level if the bears sustain pressure on its price. It will likely rally in the short term before moving to a long-term retracement.

Cryptocurrencies are highly volatile assets and can deviate from predicted price action. Investors must conduct proper research combined with risk management.

What Can Push Frax Price Higher?

Several factors could influence FXS Price action, such as external events within its ecosystem.

Frax Educational Incentives Extended For Six Months

Update 🚨 The Frax Ecosystem Educational Incentives Program has been extended for 6 months 🫡

Now is your chance to take part in the grassroots efforts to proliferate @fraxfinance far and wide 🙌

Read all about the new guidelines here 👇https://t.co/3rzkvd1MQU

— FlywheelDeFi.eth (@FlywheelDeFi) July 18, 2023

The Frax Ecosystem Educational Incentives extended for an additional six months after its success in the first quarter of 2023.

The program invests in educating the crypto community about Frax and is extending the payout from $10,000 to $12,000.

However, they announced a deadline for those interested in submitting entries for the program. This incentive will likely boost the Frax ecosystem and will have a positive effect on FRAX price.

FXS Lists on Huobi Exchange

Global crypto giant Huobi Exchange announced the listing of FXS, the governance token of the FRAX ecosystem, on its platform on July 14, 2023.

According to the announcement, the FXS spot trading (FXS/USDT) will open when the deposit volume meets the demand of market trading, while FXS withdrawals opened on July 15. The listing on a global exchange will give FXS vital exposure to the market, thereby increasing its value.

Prima Risk Team Conducts Collateral Risk Assessment on Staked Frax ETH

On-chain risk analytics firm Prima Risk conducted a risk analysis on staked frxETH. According to their findings, frxETH is an ETH liquid staking token and a liquidity management protocol. This gives Frax an advantage to grow and maintain its liquidity depth.

Also, they discovered that the Frax liquidity management protocol kept frxETH on its peg compared to other competitors. Based on the report. sfrxETH performs well on market risk factors but less on counterparty risk factors.

Frax Finance’s ecosystem will likely benefit from this risk analysis, which will affect FXS price positively.

FXS Alternative

While FXS retraces today, an exciting memecoin project positively impacts crypto.

Mr. Hankey ($HANKEY)

Mr. Hankey ($HANKEY) is a viral meme project with a fun approach determined to reward its users. It is inspired by the popular South Park character Mr.Hankey, who first appeared in 1997 and served as this project’s mascot.

$HANKEY is the utility token on this platform. It is trading live on Uniswap DEX and is also available for trading on Dextools.io. It reached an, i.e., all-time high (ATH) value of $0.3 shortly after listing, rewarding its early investors.

Its presale target of $500,000 sold out in under 13 hours showing massive investors’ interest. Overall, its value surged by 85% and continues positively.

Mr.Hankey enjoys massive attention from mainstream media, with over 8000 Twitter followers and growing support from Alpha trading groups on Discord and Telegram.

$HANKEY’s locked liquidity will likely boost its long-term value preventing inflation for the token.