Good morning, friends, how are you all? I hope you are enjoying this green situation in the market, and everyone's portfolio is healthy. While browsing the charts today, a strange movement of Frax Share or FXS coin suddenly came to my attention. With a gain of about 30-31 per cent in the last 24 hours, it is now the focus of traders' discussions. However, instead of just looking at the price from above, I went a little deeper and checked the chart and on-chain data. Theree are several interesting things that you need to know.
Analysing the technical side of the chart, it is seen that the price is currently hovering around $0.837. The moving average lines (MA 7, 25, 99) on the 5-minute timeframe are completely stuck in one place, which means that the market is now in a consolidation or sideways movement. The price is now gathering strength by retracing from the $1.12 high. The MACD indicator is also flat or neutral, indicating that there is no major selling pressure at the moment, although the momentum has decreased slightly. If the price can take a strong position above 0.840 with volume from here, we may see another upside move.
The most surprising thing is the ratio of the coin's volume to market cap. With a market cap of just $73 million, the volume has increased by more than $54 million in the last 24 hours, while the volume to market cap ratio stands at about 74 per cent! Usually, when the volume of a coin is more than 50-60 per cent of its market cap, it is understood that there is strong interest and liquidity among traders in that coin. In other words, it has now become a playground for traders, and although it is far below the all-time high, the current volatility makes it attractive for short-term traders.
However, the real game is going on behind the scenes, which is clearly visible in the money flow analysis. If you look at the data for the last day, you will see that ordinary or small traders (Small Orders) are selling out in fear, whose net flow is negative. However, the opposite picture is seen in large orders; there, "smart money" or whales are buying at this dip, and their net inflow is positive by more than $700,000. This simply means that while retail traders are panic-selling or exiting with small profits, large investors are accumulating or accumulating coins, which is usually considered a bullish sign in technical analysis. All in all, FXS is now in a very critical zone, so it would be wise to keep a close eye on the 0.800 level support and the 0.850 breakout.
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