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

Deep Dive

1. Token Swap Transition (Bearish Impact)

Overview: Bitget suspended FXS trading on December 5, 2025, as part of Frax’s rebranding from FXS to FRAX. Deposits/withdrawals were halted, and existing FXS holdings are being converted 1:1 to FRAX.

What this means: While the swap aims to unify branding, the abrupt delisting likely triggered panic selling among traders managing positions pre-conversion. Reduced liquidity during the transition amplified downside volatility.

What to look out for: Post-swap FRAX trading activity on Bitget and whether liquidity normalizes.

2. Technical Weakness (Bearish Impact)

Overview: FRAX trades at $0.81, below its 7-day SMA ($0.827) and 30-day SMA ($0.962). The RSI (33.07) signals oversold conditions but lacks bullish reversal triggers.

What this means: Persistent selling pressure has eroded key support levels. The MACD histogram’s slight uptick (+0.0177) hints at potential stabilization, but momentum remains negative.

Key level to watch: A sustained break above $0.827 (7-day SMA) could signal short-term relief.

3. Algorithmic Stablecoin Risks (Mixed Impact)

Overview: Frax’s hybrid algorithmic model faces headwinds as investors favor fully collateralized stablecoins like USDC. The July 2025 GMX hack, which involved FRAX, also lingers in market memory.

What this means: While Frax has strengthened reserves (e.g., partnerships with BlackRock-backed Superstate), broader distrust in algorithmic designs persists during risk-off periods.

Conclusion

FRAX’s decline reflects transitional friction from the token swap, technical breakdowns, and sector-wide caution toward non-fiat-backed stablecoins. Key watch: Can FRAX stabilize above $0.80 post-swap, or will bearish sentiment drive further tests of its peg?