Join Our Telegram channel to stay up to date on breaking news coverage
Frax Share (FXS) is trading at $5.30, up 4% over the last 24 hours. Its market capitalization has jumped to $390 million, placing it at position 77 on CoinMarketCap.
As it trades above a bearish chart formation, FXS features among the top gainers on Thursday, as shown in the figure below.
Although it is not yet clear why the Frax Share is turning up today, some community members say they remain optimistic about the long-term prospects of the FXS price. Stacy Muur, a Web 3 developer, posted on the social media platform X, saying, “Frax Finance is one of my top investment convictions for 2023-2024.”
Muur supported her stance on the stablecoins protocol by summarizing the features that make Frax Share the “most intricate DeFi ecosystems.”
Frax Finance is one of my top investment convictions for 2023-2024.
To help you understand why I'm so bullish on $FXS, I've summarized everything you need to know:
❯ Ecosystem flywheel
❯ Future upgrades
❯ Long-term confidenceLet's go!@fraxfinance is undoubtedly one of… pic.twitter.com/3uelije5JK
— Stacy Muur (@stacy_muur) September 12, 2023
According to the DeFi analyst, Frax Finance is one of the most innovative builders in decentralized finance, and with the introduction of FraxChain, the FXS market cap is likely to increase by at least $100 million.
“The design of the Frax Ecosystem ensures that the success of one element contributes to the prosperity of the entire ecosystem,” she added.
This explanation by Muur could have triggered investor interest in FXS as some moved to accumulate ahead of the much-awaited bull run.
Frax Share Price Must Flip SMAs at $5.90 to Support
The FXS price action between Aug. 15 and Sept. 12 formed a series of lower highs and lower lows, creating a descending parallel channel on the daily chart. Note that Frax Share price rallied as much as 7% between Sept. 12 and 13, resulting in an escape from the bearish channel.
At the time of writing, FXS was trading above the upper boundary of the falling channel, suggesting the ability of the buyers to sustain the higher levels and to initiate a sustained recovery.
As such, increased buying could lift the Frax Share price from the current price to confront resistance from the $5.90 and $5.93 supplier congestion zone, embraced by the 50-day and 100-day Simple Moving Averages (SMAs) respectively.
FXS bulls were required to flip this level into support to secure the recovery. If they succeed, they could push FXS above the $6.50 support level toward the tip of the descending parallel channel at $6.84, marking a 28% uptick from the current level.
FXS/USD Daily Chart
On the other hand, the daily chart above showed that the price faced stiff resistance on the upside. This is the major resistance zone where the 50-day and 100-day SMAs lie, as shown in the chart above.
On-chain data from IntoTheBlock also reinforced that FXS faced relatively stiff resistance in its recovery path. Its In/Out of the Money Around Price (IOMAP) model showed that Frax Share bulls were required to overcome critical barriers to sustain recovery.
According to the IOMAP chart below, the region where the SMAs lie is within the $5.83 and $5.99 price range, where approximately 6.42 FXS tokens were previously bought by around $6.9 addresses.
Any attempts to push the price past this area would be met by intense buying from this cohort of investors who may wish to break even.
Frax Share IOMAP Chart
This means that even if FXS bulls initiate a recovery, its upside may be capped around the $6.0 zone in the short term.
If FXS turns from the current level, it could drop below the channel’s upper boundary at $5.21. The Frax Share price could then oscillate within the bearish channel for a few more days as the lower boundary at $4.76 provides support.
Even as the Frax Share community remains excited about the prospects of the FXS price, they should look into other cryptocurrencies to diversify their portfolio. A token like Bitcoin BSC (BTCBSC) provides an excellent opportunity for early investors to make handsome returns in 2023.
Promising Alternative to FXS
Bitcoin BSC (BTCBSC) is a token built on the BNB Smart Chain that plans to give investors the chance that Bitcoin provided in April 2011, when 1 BTC was available for under a dollar. At that time, there were slightly more than 6 million BTC in circulation. The Bitcoin BSC team is providing the same number of $BTCBSC tokens in the presale for $0.99.
https://twitter.com/Bitcoinbsctoken/status/1701581524104011995?s=20
The $BTCBSC presale was launched over a week ago and has already raised $1.73 million. Analysts are already predicting high price targets for the token.
The advantages of the Binance Smart Chain, combined with Bitcoin’s popularity, seem promising.
Visit Bitcoin BSC here for more information on how to participate in the ongoing presale.
Related News
- Next Cryptocurrency to Explode Saturday, 9 September
- Best Crypto to Buy Now
- New Low Market Cap Crypto Presale – Inside Bitcoins
Best Wallet - Diversify Your Crypto Portfolio
- Easy to Use, Feature-Driven Crypto Wallet
- Get Early Access to Upcoming Token ICOs
- Multi-Chain, Multi-Wallet, Non-Custodial
- Now On App Store, Google Play
- Stake To Earn Native Token $BEST
- 250,000+ Monthly Active Users
Join Our Telegram channel to stay up to date on breaking news coverage
