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- 1 Frax has observed a strong decline in TVL in the last few weeks.
- 2 Technical indicators of FXS favor a weak downside trend.
- 3 A gain of 0.25% was observed in the intraday session.
In the dynamic and volatile world of cryptocurrencies, new projects and innovations are being witnessed on a regular basis. FRAX is a new project which has gained significant attention by bridging the gap between Stablecoins and Defi. Frax Share is an algorithmic stablecoin that aims to maintain a stable value pegged to the US Dollar. It is an open-source, permissionless stablecoin that works on Ethereum.
FRAX is a unique type of stablecoin in which a few parts are backed by collateral and another is backed by algorithmic supply. It dynamically adjusts the collateralization ratio and maintains stability while mitigating risk. Frax Share’s dual nature as both a stablecoin and Defi asset makes it an attractive option for users seeking stability. FRAX has a TVL of $1.04 Billion which observed a decline in the past few months. FRAX token liquidity observed a decline in the past few months as per Defilama.
Frax Share has a market cap of $492 Million and is ranked 83rd in the CMC. The volume of FXS has observed a slight surge in the intraday session. The V/M ratio of Frax Share suggests a consolidated trend in price.
Is FXS Price Ready to Rebound For $10?
Frax Share price has been observing a bearish momentum in the weekly technical chart. On the daily chart, it is looking to see a recovery for a new high. FXS price is currently trading at around $6.843 with a slight surge in the intraday session. The upside trend of FXS price can see a halt near the value of $8. Meanwhile, the support of FRAX can be seen near $6. The asset price is currently trading below the 50 and 100 Exponential Moving Averages. If the price of FXS surges above the EMA, then a strong upside trend can be seen in the future.
The RSI of FXS is near 42 suggesting its presence in the neutral zone. There is no slope in it hinting toward a consolidated momentum in price.
Summary
Frax Share is one of the incredible innovations which is bridging the gap between Defi and Stablecoin. FXS price is currently in a consolidated trend but can see a new high in the future.
Technical Levels
Major Support:$6
Major Resistance:$8
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
