Frax Share (FXS) Bulls in Action: Eyeing $6.8 Resistance, a 16% Rally Opportunity Looms

27 Sep 2023 by Crypto Presale 2 min read

Frax Share continues to stride towards the key resistance level around $6.86 after bouncing off the support zone around $5. The FXS price has been falling for weeks now before this reversal, falling from around $13 earlier in the year before finding support below $5. Right now, FXS has risen by 3.85% in the last 24 hours, 10% in the last 7 days, and 8% in the last 90 days.

One factor driving Frax Share's (FXS) present bullish momentum is FXS Finance's announcement of an upcoming Layer 2 scaling solution called Fraxchain. This news comes after the algorithmic stablecoin market faced challenges following Terra's issues. FXS aims to stabilise at $1 USD and is minted or burned as needed. Additionally, OKX's decision to list FXS on its spot market back in July provides traders with more opportunities.

Technical Analysis

Daily Timeframe

Source: TradingView

In the daily timeframe, FXS's last day's candle closed above the 50-day EMA, which shows that the buyers are gaining strength. Also, the RSI is now above the 50% neutral level, a sign that the bulls are dominant in this timeframe in the short term. If the buyers sustain this momentum and keep pushing the FXS price up to the next resistance at $6.89, that will be a massive 16% increase from its current market price.

4 Hour Timeframe

Source: TradingView

In this timeframe, there is a potential EMA crossover upwards, which means that a trend reversal is imminent. Also, the RSI is currently at 64%, showing that the bulls are dominant in this timeframe. This confirms the bullish strength in the higher timeframe and means that FXS might keep trending higher in the short term.

Is a 16% Rally Possible for FXS?

The technical indicators are showing bullish sentiment for FXS. This, combined with the positive sentiment around the project, will continue to attract more demand for FXS, and sustain the present bullish momentum, potentially pushing its price to hit the $6.8 resistance level and beyond.

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