Overly, the DeFi market is cooling down with native tokens of most protocols slowing down after posting over 5X in 2020 alone.
The Synthetix price is, at the time of writing (Dec 22), changing hands at $6.05, stable on the last day, and adding 15 percent in the last week of trading.
Synthetix (SNX) Price Overview
Technically, the SNX bulls are in control. In the past week of trading, for example, it is clear that buyers dominate.
From the daily chart, and despite the consolidation of the past three days, the SNX price is trading within a bullish breakout pattern. Notably, it is above November and H1 Dec 2020 high of around $5.8.
Accompanying this spike in prices was an uptick in trading volumes. Without confirmation, bears may still have a chance. However, this depends on if there is no follow-through above the Dec 18 high of around $6.6.
Therefore, from this, traders should—in the immediate term, watch out for the reaction of prices at the breakout level ($5.8). They should also check reaction at $6.6 and $5.1, including the middle BB—the 20-day moving average.
Either way, confirming bars—either for bull trend continuation or reversal, should be with high trading volumes, preferably exceeding those of Dec 18 (Binance data).
Synthetix (SNX) Market Movers
In what analysts believe is the foundation of a cross-chain asset network, Curve—a stablecoin trading platform, is launching an ETH/sETH pool.
Synthetix is a DeFi platform allowing the trustless trading of digital assets. Through this portal, people, anywhere in the world, can easily have exposure to different assets without the need of registering or passing through a middleman.
Benefiting from Coinbase’s expansion plans, the SNX token, together with Aave and Bancor, was listed on Dec 16. Before listing, the exchange evaluates the coin on several parameters to determine its value proposition and whether it could present a security risk for its clients.
With exposure with Coinbase’s clients, predominantly from the United States and Europe, the SNX token could benefit from the “Coinbase Effect”, build a base for a rally back to August 2020 highs.
This week, they also announced a community leader for the dHEDGE pool that has 100k sUSD to be awarded as an investment in the pool.
The Synthetix Community Pool will be an ongoing dHEDGE pool open to the public where traders can trade alongside identified talents in the Synthetix Discord.
Synthetix (SNX) Price Prediction
The SNX price is trading within a bullish breakout pattern as aforementioned.
The path of least resistance, in the immediate term, is northwards. According to trackers, the SNX/USD is up 15 percent in the last week of trading.
From the daily chart, accompanying the Dec 16 break above $5.8 was an uptick of trading volumes. There has been no confirmation of the breakout. However, prices are still trending inside Dec 16 bull bar.
As long as trading volumes are light and prices ranging inside a narrow channel—in lower timeframes, buyers can cheaply scoop SNX tokens.
The first target will be at $6.6—Dec 16 highs, and further gains could see the SNX/USD pair rise to Sep 16 highs of $7.8. It coincides with the 161.8 percent Fibonacci extension level of the Nov 2020 trade range.
Losses below Dec 16 lows invalidates this projection, confirming Dec 16 bull bar as a fake breakout.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author, and are not financial advice. Do your research.
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