Synthetix Bulls Flimsy, SNX Price is Still Open to $11

The Synthetix price is peaking after posting gains for two straight months.

As of writing (Dec 30), the token is trailing ETH and BTC, losing a ballpark seven percent on the last trading day. It is stable versus the USD.

Despite these dips, traders are optimistic, expecting a reversal of fortunes and even higher high past crucial sell walls in days ahead.

Notably, the SNX/USD price is at around its all-time high. If bulls are successful, it could see the token surge to new all-time highs in Q1 2021.

Synthetix (SNX) Price Overview

Aforementioned, the token is now in range at around its all-time high.

Although there are hints of weakness considering price action in the daily chart, trend continuation is dependent on on-chain development and DeFi-specific developments.

Technically, $8 is a psychological round number and a sell wall, slowing down bulls aiming for a new all-time high above Dec 26 highs.

However, the absence of a follow-through–and recent bars with long upper wicks suggesting resistance in lower time-frames, could pour cold water on buyers, even triggering a dump correcting prices back to $6.1.

Nonetheless, that prices are banding along the upper BB with high participation from the above-average participation levels in the tail-end of 2020 could either confirm buyers or bears depending on the breakout direction.

Synthetix (SNX) Market Movers

The platform allows for trustless trading of crypto derivatives on the Ethereum platform.

Its governance token, SNX, is one of the top performers in 2020. It rose from $0.03478640 of early Jan 2019 to spot rates.

At the time of writing, Synthetix has $1.22 billion of assets under management. However, this can rise if DeFi attracts more capital and interest in 2021.

Synthetix daily trading volumes continue to rise.

$50M in trading volume for @synthetix_io over the past 24 hours. Excited for the future when we measure it with a B instead of a M! pic.twitter.com/xzvdlHKAHK

— David (@0x_dvd) December 27, 2020

As per the latest report, the Synthetix community has built the “least volatile, most liquid and most decentralized stablecoin on Ethereum”, sUSD. With over $250 million of Synths in circulation, it hints at the success Synthetix had in 2020.

The team plans to expand the Synth supply to over $1 billion in 2020. This also includes their plan of migrating to L2 to by-pass the high transaction fees on the base layer, the impact of leverage trading synths, and addressing the problem of front-running.

In H2 2021, the team will prioritize the full rewrite of the Synthetix code, in the process, fixing identified issues and re-launching a scalable platform that can handle billions in transactions.

Synthetix Price Prediction

The SNX/USD price uptrend is solid.

Although the SNX price is stable versus the USD on the last day, buyers are in charge.

Clear in the daily chart is a three-bar bear reversal pattern, forcing prices back below $8. Of note, yesterday’s bar confirmed the lower lows of the previous two days.

Even so, the depreciation is with low trading volumes. Unless there is an influx of bear pressure printing a bear bar after the Doji bar of Dec 27 and 28 (spinning tops) along $8, buyers have a lead in the immediate terms.

Noticeably, bars are banding along the upper BB suggesting demand and momentum from buyers. Also, volumes are light, and prices ranging inside Dec 26 bull bar.

Losses below $7 may spark a sell-off towards $6.

Conversely, gains above $8 and Dec 26 highs could see the SNX/USD price rise to $11. It is the 1.618 percent Fibonacci extension level based on Nov to December 2020 trade range.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.