- Frax has the potential to reach $25 in 2023 if it breaks above Resistance 1 at $12.5
- Crypto analyst tweeted that FXS has good fundamentals irrespective of the irrational market.
- The FXS bearish market prediction for 2023 is at approximately $4.00.
What is Frax Share (FXS)?
The Frax protocol is a two-token system encompassing a stablecoin, Frax (FRAX), and a governance token, Frax Shares (FXS). Frax is the first stablecoin protocol to implement design principles of both, entirely collateralized and fully algorithmic with no backing protocol, to create a highly scalable, trustless, extremely stable, and ideologically pure on-chain money.
By using both the preceding principles in unison, Frax seeks to address the issues that a standalone protocol could be vulnerable to. For instance, when you consider collateralized stablecoins at one end of the spectrum, these stablecoins either have custodial risk or require on-chain over-collateralization. However, these designs provide a stable coin with a fairly tight peg with higher confidence than purely algorithmic designs.
On the other end of the spectrum as per the company:
Purely algorithmic designs such as Basis, Empty Set Dollar, and Seigniorage Shares provide a highly trustless and scalable model that captures the early Bitcoin vision of decentralized money but with useful stability.
However, the issue with algorithmic designs is that they are difficult to bootstrap, slow to grow (as of Q4 2020 none have significant traction), and exhibit extreme periods of volatility which erodes confidence in their usefulness as actual stablecoins. Hence, by integrating both design principles Frax endeavors to address the drawback.
Frax Share (FXS) Market Overview
| Name | Frax Share |
| Symbol | fxs |
| Rank | #78 |
| Price | $8.59 |
| Price Change (1h) | -0.65396 % |
| Price Change (24h) | 3.21971 % |
| Price Change (7d) | 2.41465 % |
| Market Cap | $643413591 |
| All Time High | $42.8 |
| All Time Low | $1.5 |
| Circulating Supply | 74505870.7691 fxs |
| Total Supply | 99822984.1146 fxs |
Analysts’ View on Frax Share (FXS)
A crypto analyst tweeted that FXS has good fundamentals irrespective of irrational markets.
Frax Share(FXS) Current Market Status
According to CoinMarketCap, FXS is up 6.03% in the last 24 hours and is trading at $8.56. Furthermore, it has a 24-hour trading volume of $34,023,800. With a live market cap of $638,042,205, FXS ranks 73.
When considering the price behavior of FXS during the past week, it has been an upheaval. FXS started the week with an opening market price of $8.35. However, just a few hours into the first day of the week the bears pulled FXS below the opening market price (red zone). The token descended further into the red zone and registered its lowest price of $6.666.
When it touched the bottom, the bulls stepped into FXS rescue. Slowly the price started to increase within the red zone. Finally, on the third day of the week, FXS was able to break above its opening market price of $8.35. The rally continued until the late hours of the fourth day, and FXS reached its maximum price of $9.48.
However, after consolidating for the fourth and the fifth day with the $8.5-$9.5 price range, the token started descending. Nonetheless, the bears could not take FXS deep into the red zone as the bulls were contending. Hence, the price of FXS is floating around the opening market price of $8.35.
Frax Share (FXS) Price Analysis 2023
FXS’s price and cryptocurrency prices on the whole could be altered in the negative and positive direction by external factors such as developments, modifications, and new regulatory framework. Let’s take a look at the chart and try to predict in which direction FXS could fluctuate.
Frax Share (FXS) Price Analysis – Bollinger Bands
Bollinger band is an indicator that is used to measure volatility in the market. This indicator relies on two parameters: Period and Standard deviation. The period is the time frame while standard deviation measures how far the values are from the mean or average.
The Bollinger band has an upper band, median line, and lower band as shown below. The logic is that the price of the digital asset is supposed to hover close to the median line of the Bollinger band. However, on occasions that the price of the security strays too far from the median line, just as FXS has touched the upper Bollinger band, then we could expect the price to fall back close to the median. And this applies vice versa when the price touches the lower Bollinger band.
The logic behind this is based on the empirical law of standard deviation which states 95% of the time, the normal distribution of data lies within two standard deviations. The upper band is calculated by taking the middle band and adding twice the daily standard deviation to that amount. The lower band is calculated by taking the middle band minus two times the daily standard deviation
On instances where the Bollinger bands widen we could expect more volatility in the market and we could expect the prices to consolidate or move sideways when the bands contract.
Frax Share (FXS) Price Analysis – RSI Indicator
The Relative Strength Index is an indicator that is used to find out whether the price of a security is overvalued or undervalued. As per its name, RSI indicators help determine how security is doing at present, relative to its previous price. To evaluate this, RSI compares the gains of the securities against the losses it made during the past 14 days. This ratio of gains and losses is then deducted from the 100.
Hence, if the answer is less than 30, then we call that the price of the security is in the oversold region. This means that many are selling the security in the market, and as such the security is undervalued. Moreover, as per the Supply-demand curve theory, the price is supposed to drop when there is an increase in supply.
If the answer is more than 70 then the security is overbought as many are buying. Since many want to buy the security the demand increases which intuitively increases the prices.
The RSI of FXS is at 43.42 and is titling up at press time. As it’s neither in the overbought nor in the oversold region, we could say that the trend is well set. However, when considering the behavior of RSI with FXS variation we could see that FXS made higher highs in unison with the RSI (circles). Nonetheless, after some time FXS was making higher highs while the RSI was making lower highs (blue ellipticals).
This indicates that the coin has lost momentum in its bullish trend and a trend reversal (break out ) is imminent. And as per RSI’s indication, the trend reversed and the token too started making higher highs. Although in this scenario the RSI pointed out a break there are also other instances where the RSI could give a false indication of breakouts.
Frax Share (FXS) Price Prediction 2023
When considering the chart below, FXS has taken the shape of an inverted cup and handle pattern. As of the time of writing, the token is forming the handle. While forming the handle FXS touched the lower Bollinger and the market corrected the prices as a result FXS is trading close to the middle Bollinger band.
The Resistance 1 at $12.75 seems to be a formidable hurdle to break as FXS was rejected the last time that it approached this limit. However, the Bollinger bands are widening and this signifies more volatility. Hence, there’s a higher chance of FXS fluctuating by a greater margin.
If the bulls take over the market, there lies a possibility of the FXS breaking resistance 1 and heading for resistance 2 which is at $25.2. As pointed out above the RSI is neutral but since it’s titling in the upwards direction, we could expect the prices to rise.
Contrastingly, if the bears dominate the market FXS will fall to support 1 at approximately $5.00. But before the token takes such a dive, the 50-day MA might be a great support.
Frax Share (FXS) Price Prediction 2024
The next year could be a significant year in the cryptocurrency calendar as it is the year of Bitcoin halving. Since the rewards for mining and validating will be slashed in half, there will be fewer validators. This means there will be less BTC mined and the supply will shrink and as a result, the price could surge.
Since all cryptocurrencies rise and fall in tandem with BTC, we could expect FXS to reciprocate this behavior. As such FXS could rise to somewhere close to $30 (Resistance 3).
Frax Share (FXS) Price Prediction 2025
In the aftermath of the BTC halving, we could expect the market to correct BTC. And when BTC corrects, the other coins will reciprocate this behavior, as such FXS could fall to support at around $18 in 2025.
Frax Share (FXS) Price Prediction 2026
In 2026, FXS could test Resistance 2 once again at $25. And we could expect a period of consolidation with the prices rebounding between Support and Resistance 2. At times it could break above either limit, however, most of its fluctuation may be limited within this range.
Frax Share (FXS) Price Prediction 2027
With the nearing of the next Bitcoin halving in 2028, 2027 may give traders a glimmer of hope. And when this positive thinking has a ripple effect, the market sentiment could get positive and there might be a bull run. If this is to take place then FXS could reach $30 or even more.
Frax Share (FXS) Price Prediction 2028
FXS will likely trade at about $36 in 2028 due to the start of the next bull run with respect to Bitcoin halving. With the powerful sentiment of investors to buy more cryptocurrencies, a buy pressure may be seen in the market.
Frax Share (FXS) Price Prediction 2029
Notably, the most impact of a bullish sentiment resulting from Bitcoin halving could be mainly experienced in the coming year. As such we can expect the price of FXS to break more psychological resistance and trade around $42 by the end of 2029.
Frax Share (FXS) Price Prediction 2030
The impact of cryptocurrency adoption could stabilize the market by 2030, sustaining the bullish gains of the previous years. Hence, we can expect the price of FXS to trade at about $46 by the end of 2030.
Frax Share (FXS) Price Prediction 2040
FXS is predicted to surpass more psychological resistance levels and trade around $52.0 by the end of 2040, potentially even surpassing its all-time high value.
Frax Share (FXS) Price Prediction 2050
By the year 2050, the widespread adoption of cryptocurrencies is predicted to stabilize the market and maintain the previous bullish gains. As a result, we can anticipate FXS to trade at around the $60 mark towards the end of 2050.
Conclusion
If the investors see potential in FXS and add it to their portfolio then we will be able to see exponential growth in FXS prices.
FAQ
The Frax protocol is a two-token system encompassing a stablecoin, Frax (FRAX), and a governance token, Frax Shares (FXS).
FXS can be traded on many exchanges like other digital assets. Binance, Uniswap, Kucoin, Kraken, etc are some of the top exchanges for trading FXS.
FXS has the potential to break its all-time high of $42.67 in 2030 but it could break it much before that.
FXS is one of the rising tokens and if it manages to break above the present $12.5 (Resistance 1) zone it has the potential to hit $25 (Resistance 2).
Since FXS provides investors with several opportunities to form their crypto holdings, it grooms to be a good investment in 2023.
The lowest price of BGX is $1.52.
FXS was launched in 2019.
FXS was founded by Sam Kazemian, Travis Moore, and Jason Huan.
FXSX can be stored in a hot wallet, cold wallet, or exchange wallet.
FXS is expected to reach $25 by 2023.
FXS is expected to reach $30 by 2024.
FXS is expected to reach $18 by 2025.
FXS is expected to reach $25
FXS is expected to reach $30 by 2027.
FXS is expected to reach $36 in 2028.
FXS is expected to reach $42 by 2029.
FXS is expected to reach $46 by 2030.
FXS is expected to reach $52 by 2040.
FXS is expected to reach $60 by 2050.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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