Latest Frax (prev. FXS) (FRAX) Price Analysis

By CMC AI
26 August 2025 07:07PM (UTC+0)

Why is FRAX’s price down today? (26/08/2025)

TLDR

Frax (FRAX) fell 1.9% in the past 24h, underperforming the broader crypto market (-0.83%). Three key drivers:

  1. GMX hack spillover – $10.5M FRAX stolen in July 2025 exploit still weighs on sentiment (PeckShield)

  2. Technical weakness – Price broke below critical $2.65 pivot, RSI (40.89) signals bearish momentum

  3. Stablecoin competition – Ethena’s USDe growth ($5.7B volume) pressures Frax’s market position

Deep Dive

1. GMX Hack Aftermath (Bearish Impact)

Overview:
The July 2025 GMX exploit saw 10.5M FRAX ($23M at current prices) stolen, with partial returns failing to fully restore confidence. While GMX recovered most funds via a 10% bounty deal, lingering concerns about DeFi security have kept FRAX holders cautious.

What this means:
The incident highlighted systemic risks in protocols using FRAX as liquidity collateral. Reduced demand for FRAX in yield strategies and ongoing sell pressure from reimbursements contributed to the dip.

2. Technical Breakdown (Bearish Impact)

Overview:
FRAX broke below its $2.65 pivot point and trades below all key moving averages (7-day SMA: $2.76, 30-day SMA: $2.92). The MACD histogram (-0.0237) confirms bearish momentum.

What this means:
Traders view the breakdown as confirmation of a downtrend, with Fibonacci retracement levels suggesting next support at $2.51 (swing low). The RSI at 40.89 leaves room for further downside before oversold conditions emerge.

3. Stablecoin Competition (Mixed Impact)

Overview:
Ethena’s USDe reached $5.7B cross-chain volume on 23 networks, becoming the third-largest synthetic dollar. This growth threatens Frax’s position as a DeFi liquidity staple.

What this means:
While Frax’s August 3 partnership with Echo Market aims to boost ecosystem engagement, it hasn’t offset capital rotation toward newer stablecoin designs offering higher yields and institutional backing.

Conclusion

FRAX faces triple pressure from hack-related distrust, technical sell signals, and rival stablecoins gaining market share. The 24h dip aligns with its 30-day -29.3% slump, suggesting structural challenges beyond short-term volatility.

Key watch: Can FRAX hold the $2.51 Fibonacci support level, or will Ethena’s USDe continue draining liquidity from legacy algorithmic stablecoins?

Why is FRAX’s price up today? (23/08/2025)

TLDR
Frax (FRAX) dipped 0.25% over the last 24h, but its 7-day gain of 3.52% aligns with broader market recovery and protocol-specific catalysts. Here’s why:

  1. Echo Market Partnership (Bullish) – Frax’s collaboration with Echo Market (3 Aug 2025) boosted community engagement and content-driven demand.
  2. NEAR Protocol Integration (Bullish) – NEAR’s acquisition of FRAX for liquidity (13 Aug 2025) strengthened cross-chain utility.
  3. Technical Rebound – Neutral RSI (51–55) and improving MACD suggest consolidation after a 30-day 15.8% decline.

Deep Dive

1. Strategic Partnerships Driving Adoption (Bullish)

Overview:
Frax partnered with Echo Market on 3 August 2025 to incentivize content creation and combat bot activity. This initiative aligns with Frax’s focus on community growth and ecosystem liquidity. Separately, NEAR Protocol’s integration of FRAX into its agent economy (13 August 2025) expanded Frax’s use cases in cross-chain transactions.

What this means:
- Partnerships enhance FRAX’s visibility and utility, driving demand.
- NEAR’s adoption signals institutional confidence, potentially attracting DeFi liquidity.

What to look out for:
Progress on Fraxswap’s NEAR trading pairs and Echo Market’s campaign traction.


2. Market-Wide Altcoin Momentum (Mixed Impact)

Overview:
Bitcoin dominance fell to 57.45% (from 61.03% a month ago), signaling capital rotation into altcoins. The CMC Altcoin Season Index rose 20.93% over 30 days, reflecting risk-on sentiment.

What this means:
- Frax benefits from sector-wide liquidity shifts, but competition with USDe and DAI intensifies.
- Derivatives open interest surged 41.96% monthly, indicating speculative interest in mid-cap tokens like FRAX.


3. Technical Indicators Hint at Stabilization

Overview:
FRAX’s RSI (51–55) and MACD (-0.02 histogram) suggest neutral momentum after a 30-day correction. The price holds above the 200-day EMA ($2.61), a key support level.

What this means:
- Short-term consolidation near $2.87 could precede a breakout if buying pressure returns.
- Watch the $3.20 Fibonacci retracement level for resistance.


Conclusion

Frax’s modest weekly rebound reflects a mix of strategic partnerships, altcoin rotation, and technical stabilization. While the 24h dip mirrors broader market caution, FRAX’s cross-chain integrations position it for mid-term growth.

Key watch: Can FRAX sustain momentum above its 200-day EMA amid rising stablecoin competition?

CMC AI can make mistakes. Not financial advice.
FRAX
Frax (prev. FXS)FRAX
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$2.61

0.99% (1d)