The DeFi party seems over.
Total Locked Value (TVL) is down to $14 billion, sliding from the over $15 billion of last week. With farmers hitting the exits, the Synthetix price is now down, crumbling in the last few days.
Technically, there is a chance of recovery. However, this is dependent on how prices react at support levels.
At the time of writing (Dec 11), the Synthetix (SNX) price is down 10 percent on the last day of trading and a massive 20 percent week-to-date.
With the meltdown, the SNX price is now changing hands at $4.19, retracing from around $5.8 of late November 2020.
Synthetix (SNX) Price Overview
Overly, the SNX price is wavy, oscillating within a $2 range with caps at $5.8 to the upside and $3.7 on the lower side.
Overly, as long as prices trade above $3.7, it may be an opportunity for savvy traders to scoop the token at a cheap while positioning for $5.8—if bulls flow back, in a trend resumption pattern.
From the candlestick arrangement, bears appear to be in control. Following Dec 8 bear bar forcing prices below the 20-day moving average, the SNX/USDT pair is trading within a bear break-out pattern—incredibly with an uptick in trading volumes as judged from the events of the past few days.
Although the SNX/USDT pair is bullish, losses below $3.7 could trigger a dump down back to $2 or worse sub-1, retesting the previous resistance now support the trend line.
Synthetix (SNX) Market Overview
DeFi has a fee problem stemming from the scalability troubles of the Ethereum mainnet.
There are programs to mitigate this and introduce fitting solutions to spur a more wholesome growth in other Ethereum’s sub-sectors besides open finance.
Heeding to Vitalik Buterin calls, Synthetix is opting for a Layer-2 route and is setting the pace for other “heavy” DeFi protocols to follow suit.
Selecting Optimistic Rollups (ORU), an off-chain solution that supports smart contracting and therefore trustless transacting, Synthetix, on Dec 4, said L2 SNX was available for withdrawal from the ORU test net. It marked the end of the reward claiming phase for SNX stakers, and the beginning of the final test net phase.
Eventually, the success of Synthetix in l2 will mark the end of the nagging high DeFi Gas fees.
Also, Synthetix is extending the Volumes Program and exploring the possibility of making it a permanent component of the protocol. The program incentivizes the integration of the Synthetix program by providing revenue streams partnering projects.
Synthetix (SNX) Price Prediction
The SNX price is being pummeled at the time of writing (Dec 11). The token is down double digits week-to-date and in the last 24 hours.
Candlestick patterns in the daily chart point to bears. There are series of lower lows relative to the upper BB. With Dec 8 losses below the 20-day moving average and an uptick of volumes in subsequent bars driving prices lower, every high could be an unloading opportunity for aggressive traders.
Possible reaction points are $3.8—the 50 percent Fibonacci retracement level of the Nov trade range, and the baseline of the M-pattern, and on the lower end, $3—the 78.6 percent Fibonacci retracement level near Nov 2020 lows.
High volume gains above Dec 8 highs at $5.5 nullifies this bear projection.
Chart Courtesy of Trading View
Disclosure: Opinions expressed are those of the author. Do your research.
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