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Silicon Valley Bank recently became the second-largest US banking disaster. - 2
FRC stock price was changing hands at a market price of $81.76.
With the recent collapses of institutions like Silvergate, Silicon Valley Bank, and more, the banking sector is turning into a giant red star for the finance industry. However, others may have benefited from this tumultuous scenario by cementing their positions amid the horrid market conditions. First Republic Bank (NYSE: FRC), a US-based wealth management company, has emerged as an entity that appears to have avoided the falling dominoes the space beheld in the past few weeks.
A Sigh of Relief for The Investors
FRC Stock has started to recover its position after a steep decline during the past couple of weeks. The Wall Street Journal reported that the company claims to have a strong capital position, higher than the standard regulatory requirements. The bank has delivered a sense of calm among the investors with an assurance of a solid base. The organization stated that they still hold a $60 Billion available and unused capacity at the Federal Reserve Bank and Federal Home Loan Banks.
The statement has helped increase consumer trust in the company after a few succumbed to the economic upheaval. According to CNBC, Silicon Valley Bank became the second-largest disaster in the US banking sector after the Great Recession. Reports suggest that startup clients started withdrawing their funds to avoid any financial blow to their firms amid higher rates. This raised concerns regarding a bank run, hence a havoc!
Silvergate, a crypto-friendly bank, has contributed to the recent economic turmoil. The company struggled with its clients, including Genesis and FTX, which cratered recently during the crypto bloodbath. Moreover, poor quarterly reports pushed them to announce their liquidity and wind up the operations.
FTX became a significant part of the bigger picture, starting with Terra USD’s fall in May 2022. Once perceived among the most secure smart contract-based stablecoins fell by the face after the algorithmic de-peg, leaving the community holding their bags. 2022 witnessed the most intense crypto winter, bringing several cryptocurrencies to their knees.
FRC Stock Price Action
Although the company has suffered a lot during the past few days, FRC stock made a remarkable comeback yesterday. The organization registered over 51 Million accumulators in the market, which led to an almost 110% gain yesterday after trading at a low of $45.
The price has broken three fib levels since March 08, 2023. A breakthrough may appear in the coming days if the buyers remain active for at least a week. RSI indicates an oversold position whilst MACD highlights increasing seller dominance in the market. Currently, FRC stock holds a support at around $69 and a resistance close to $96.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/03/11/frc-stock-analysis-more-buyers-to-appear-as-shares-regain-position/