FRAX as an algorithmic stablecoin was originally designed to maintain a price anchor of 1 USDT. But the current market situation is quite interesting—the spot price has already surged to 129, a premium of exactly 30 points above the target price.

What does such a gap mean? In simple terms, there is a clear deviation in how the market is pricing FRAX. For traders without existing positions, this situation is often worth paying attention to.

If you haven't established relevant positions in your account, consider directly entering a short position at the current market price. Based on the characteristics of algorithmic stablecoins and the current price difference, the target points toward levels below 1. The underlying logic is straightforward: high premiums will eventually revert to fundamentals.

However, the prerequisite is to understand FRAX's mechanism—its value support and stability expectations. Once these factors re-balance, there will be considerable downward momentum.