TradeCityPro | FXS : Signs of a Bullish Momentum Surge👋 Welcome to TradeCityPro!
In this analysis, I will evaluate the FXS token. This token belongs to the Frax project, which is considered one of the most comprehensive protocols in DeFi. It could be a strong investment for a bullish market portfolio.
📅 Weekly Timeframe: Early Signs of Bullish Momentum
On the weekly timeframe, we observe significant selling pressure right from the beginning of the chart. This selling pressure has driven the price down twice: once from the 38.917 resistance to the 4.468 support, and again from 11.859 to 1.613. Notably, this is one of the few coins that has yet to revisit the lows it formed in early 2023.
📊 Despite the significant decline, market volume has consistently increased, and overall, buying volume has been greater than selling volume.
📈 Currently, in line with Bitcoin’s upward movement, FXS has also rebounded from its 1.613 low and climbed to the 4.468 zone. This upward movement occurred after breaking the 34.90 resistance on the RSI, which introduced considerable bullish momentum into the market.
✅ If the 4.468 resistance is broken, the next targets are 7.515 and 11.859. These two resistances mark the goals for the next upward movement if it continues, with 11.859 being a key critical resistance for this coin.
🚀 Breaking the 11.859 resistance will be challenging. However, if the market gains substantial momentum, FXS could break through all resistances with a large bullish candle and head towards higher targets. On the other hand, a gradual and steady approach towards this level would make breaking it significantly harder.
🔼 If this resistance is broken, additional bullish momentum could enter the market, enabling the price to move towards the 38.917 zone and potentially reach new all-time highs (ATH).
🔍 To explore more scenarios, let’s examine the daily timeframe for detailed insights.
📅 Daily Timeframe: Struggling Against Key Resistance
In the daily timeframe, the latest upward movement in price is visible in more detail. As seen, after the last touch at 1.613, there was a massive and notable increase in buying volume. However, upon reaching the 4.819 resistance, a Blow Off candle was formed, marking the end of this trend’s upward leg.
📉 Currently, the price is in a corrective phase and has fallen below the 3.97 zone. If the correction continues, there is a significant resistance zone close to the 2.346 support level that I’ve highlighted. Should the RSI stabilize below the 53.46 support level, the likelihood of a deeper correction will increase.
🧩 Conversely, if the 4.819 resistance is broken, we could expect another rally for the price. The targets for this rally have been identified in the weekly timeframe analysis
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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