Frax (FXS) Price Jumps 200%, Eyes Breakout at Strong Resistance Level

Key Takeaways

• After breaking out of a descending channel, FXS has reclaimed the $3.96-$5.02 resistance zone.
• Overextended signals suggest a potential short-term pullback or consolidation.
• Support at $3.96 and resistance at $5 will determine the next trend.

Frax Share (FXS) has staged an impressive recovery, breaking out of a prolonged downtrend and surging nearly 200% from its 2024 lows. The price has reached a critical resistance zone at $5, coinciding with historical supply levels, which now act as a key decision point for the next move.

While the bullish momentum remains strong, there are signs that the price is getting overextended. FXS’s next move depends on whether it can break above $5 or retrace to establish a new support base.

FXS Price Analysis

The daily chart of FXS highlights a robust breakout from a prolonged downtrend that lasted through 2024, following an extended period of consolidation between the $1.60-$2.40 range. 

This breakout marks the beginning of a new bullish phase. The price has surged 200% but now faces a key resistance zone at $5, testing its upper boundary.

The RSI indicates strong bullish momentum, yet it is entering the overbought territory, suggesting a potential slowdown or consolidation near the $5 region.

The current zone aligns with historical price interaction. It is a critical level for determining whether the price can sustain further upward momentum or revert for a retest of lower levels.

Key Observations

Breakout Confirmation: FXS has decisively broken out of its descending channel, reclaiming the $3.96-$5.02 resistance zone.

Overbought RSI: Elevated RSI suggests a potential short-term consolidation or retracement.

Key Horizontal Zone Interaction: Critical support costs $3.96 and $2.43 if the price reverses.

Outlook

Sustaining above $5.02 would confirm the continuation of the bullish trend, with potential targets near $6.80 and $8.12 (previous key resistance levels). Failure to hold this zone could lead to a retest of $3.96 or deeper consolidation near $2.43 before resuming upward momentum.

FXS Price Prediction 

The 1-hour chart illustrates the completion of an impulsive five-wave structure, culminating at the $5.02 resistance zone, coinciding with significant overhead supply from historical price levels.

The emerging corrective structure, labeled as an ABC wave, indicates a likely retracement toward key Fibonacci support levels.

The price is expected to consolidate or decline in wave A, followed by a bounce in wave B and further retracement in wave C to establish a new base for potential continuation.

Key Levels to Watch

Support Levels:

• $4.23 (0.236 Fib): Immediate support for the initial retracement in wave A
• $3.96 (0.382 Fib): Critical support zone aligning with prior breakout levels.
• $3.32 (0.5 Fib): A deeper retracement level and likely target for wave C.
• $2.92 (0.618 Fib): Key structural support if correction extends further.

Resistance Levels:

• $5.02: Key resistance zone and a peak of the impulsive wave.
• $5.20-$5.50: Extended resistance area for potential renewed bullish momentum.

The current price action suggests a consolidation or corrective phase is underway. A sustained move below $4.23 would validate the corrective ABC structure, targeting deeper retracement levels.

However, holding above $3.96 would signal strength and possibly another attempt to break above $5.02. A breakout above $5.02 would confirm renewed bullish momentum, targeting higher Fibonacci extensions.