Frax Finance faces intense selling pressure as whales offload

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A number of addresses holding a large amount of the Frax Finance token recently registered outflows totaling 1.42 million FXS tokens valued at over $8 million.

is starting to experience the return of sell pressure after previously going through a bullish phase. Could this be a temporary short-term profit-taking event, or is there more to the story?On-chain data revealed that some FXS whales were contributing to sell pressure at press time. A number of addresses holding a large amount of the Frax Finance tokens recently registered outflows totaling 1.42 million FXS tokens valued at over $8 million.

These outflows were observed towards the end of September. Moreover, most outflows went to one address, which was likely an exchange address.pivot for FXS, which was previously on a bullish trend. The token exchanged hands at $5.61 after a 7.6% dip from its weekly high on 27 September. The real question now is whether the whale outflows are a sign of short-term profit-taking, or could it be an indicator that they’ve become disenfranchised with Frax Finance.There is a significant chance that the sell pressure from whales is mostly just short-term profit-taking. This is because the subsequent downside appears to have faded after the RSI reached its mid-range.

The recent retracement may also be an indicator that the hype around the recent rally is coming to an end.As for its on-chain data, there was a significant spike in social dominance in the last 24 hours, likely due to the market’s reaction to whale sell pressure.In addition, daily active addresses achieved a 4-week peak on 28 September and has since slowed down. This suggested that retail demand has slowed down considerably, and this may have paved the way for sell pressure.

Meanwhile, FXS concluded September with a spike in the age consumed metric, indicating that a large number of tokens were recently moved.revealed some interesting findings regarding Frax Finance. Fees on the protocol are down by 30.23% in the last 30 days, while daily active users dipped by 10.6% during the same period. Staked assets dipped by 5.24.gained by 5.17% to $444 million. There was also a significant growth in developer activity, as the number of core developers grew by 12.

 

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