FXS demonstrates power with a 4% pump

Frax Share (FXS) is trading at $5.30, up 4% in the last 24 hours. The market capitalization has risen to $390 million, placing it at position 77 on CoinMarketCap.

As it trades above a bearish chart formation, FXS is among the top gainers on Thursday, as shown in the figure below.

While it’s not yet clear why Frax stock is popping up today, some community members say they remain optimistic about the long-term prospects of the FXS price. Stacy Muur, a Web 3 developer, wrote on the social media platform

Wall supported her stance on the stablecoins protocol by summarizing the features that make Frax Share among the “most complicated DeFi ecosystems.”

Frax Finance is one of my top investment beliefs for 2023-2024.

To help you understand why I am so optimistic $FXSI’ve summarized everything you need to know:

❯ Ecosystem flywheel
❯ Future upgrades
❯ Long-term trust

Let’s go!@fraxfinance is undoubtedly one of… pic.twitter.com/3uelije5JK

— Stacy Wall (@stacy_muur) September 12, 2023

According to the DeFi analyst, Frax Finance is one of the most innovative builders in the world 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 statement from Muur may have fueled investor interest in FXS as some started accumulating ahead of the long-awaited bull run.

Frax stock price needs to flip SMAs to $5.90 to support

The FXS price action between August 15 and September 12 formed a series of lower highs and lower lows, creating a descending parallel channel on the daily chart. Note that Frax Share’s price rose by as much as 7% between September 12 and 13, resulting in an escape from the bearish channel.

At the time of writing, FXS was trading above the upper limit of the descending channel, indicating that buyers are able to hold the higher levels and initiate a sustainable recovery.

As such, more buying could lift the Frax share price from its current price to resist the $5.90 and $5.93 supplier congestion zone embraced by the 50-day and 100-day Simple Moving Averages (SMAs), respectively .

FXS bulls needed to convert this level into support to secure the recovery. If they succeed, they could push the FXS above the $6.50 support level towards the tip of the descending parallel channel at $6.84, marking a 28% upside from current levels.

FXS/USD daily chart

On the other hand, the daily chart above showed the price facing stiff upside resistance. This is the key resistance zone where the 50 and 100 day SMAs lie, as shown in the chart above.

On-chain data from IntoTheBlock also reinforced that FXS was encountering relatively stiff resistance on its recovery path. The In/Out of the Money Around Price (IOMAP) model showed that Frax Share bulls were needed to overcome critical barriers to support the recovery.

According to the IOMAP chart below, the region where the SMAs lie is within the $5.83 and $5.99 price range, where previously around 6.42 FXS tokens were purchased by addresses at around $6.9.

Any attempt to push the price past this area would be met with intense buying by this cohort of investors who may want to break even.

Frax Share IOMAP chart

This means that even if the FXS bulls initiate a recovery, the near-term upside potential could be limited around the $6.0 zone.

If FXS deviates from current levels, it could fall below the channel upper limit at $5.21. The Frax share price could then fluctuate within the bearish channel for a few more days as the $4.76 lower limit provides support.

Even as the Frax Share community remains excited about the prospects of the FXS price, they should look to other cryptocurrencies to diversify their portfolio. A token like Bitcoin BSC (BTCBSC) offers an excellent opportunity for early investors to earn great returns in 2023.

Promising alternative to FXS

Bitcoin BSC (BTCBSC) is a token built on the BNB Smart Chain and plans to give investors the opportunity that Bitcoin offered in April 2011, when 1 BTC was available for less than a dollar. There were just over 6 million BTC in circulation at the time. The Bitcoin BSC team is providing the same number of $BTCBSC tokens in pre-sale for $0.99.

????Grab a piece of history #BitcoinBSC!

The initial phase of the #Presale starts with 4 million tokens for 99¢, just like in 2011 #Bitcoin.

Unsold tokens after listing contribute to the #To expand contract for a fixed amount of 21 million $BTCBSC offer.????
https://t.co/oM0YP8IlbV
#Stake2Earn pic.twitter.com/NelsRkmHXS

— Bitcoinbsc (@Bitcoinbsctoken) September 12, 2023

The $BTCBSC pre-sale launched over a week ago and has already raised $1.73 million. Analysts are already predicting high price targets for the token.

The benefits of the Binance Smart Chain, combined with the popularity of Bitcoin, seem promising.

Visit Bitcoin BSC here for more information on how to participate in the ongoing pre-sale.

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