⚠️ $FRAX Analysis: The "Blow-Off Top" – 40% Crash After the Pump!
If you are trading $FRAX, put down the coffee and look at the wicks. The 4-Hour chart has printed a textbook "rejection candle", dropping from a high of 1.3198 down to 0.9304 in a flash.
Here is what the chaos tells us:
📉 1. The "Gravestone" Signal
The Wick: The massive upper shadow (wick) reaching 1.3198 represents aggressive selling. Buyers tried to push it up, but sellers slammed it back down instantly.
The Reality: A move this sharp usually traps "FOMO buyers" at the top. Those buyers are now underwater, which creates heavy resistance on any bounce.
📊 2. Volatility is Off the Charts
Range: The price has moved between 0.80 and 1.31 within a single session.
Volume: The volume bars are huge but declining, suggesting the initial explosion is over and we are entering the "hangover" phase.
🎯 Trade Setup: The "No-Man's Land"
Trading here is high-risk. We are in the middle of a massive range.
View: Neutral-Bearish (Until it stabilizes).
⛔ Resistance (The Ceiling): 1.0000 - 1.0500.
Why? The $1.00 peg is psychological. If price bounces there, trapped buyers from the top will likely sell to break even, pushing price back down.
🛡️ Support (The Floor): 0.8034.
Why? This is the launchpad of the move. If we lose 0.80, the pump is fully retraced.
Strategy: Stay Away or Scalp Only.
Long: Only if it touches 0.8034 and holds.
Short: If it rejects near 1.00.
💡 Trader's Note:
Do not try to "catch the falling knife." When a coin dumps 30-40% from the top this fast, it usually chops sideways for a while before picking a direction. Preserve your capital.
Disclaimer: This is technical analysis, not financial advice. High Volatility Alert.
