SNX Trade Volumes Up 364% as Synthetix Prepares for L2 Staking

The Synthetix price, albeit the contraction of DeFi’s TVL, remains one of the top performers. In a sea of red, the SNX price is up, adding eight percent, stretching versus the BTC and ETH week-to-date.

For perspective, despite the stellar performance of the digital gold and the world computer, the token managed to outperform them, adding 21 and 24 percent, respectively.

As of writing on Jan 13, the SNX price changing hands at around $16, hovering around 2021 highs with more rooms for upsides. Notably, the upswing is with decent participation judging from the uptick in trading volumes, enough tailwinds for optimistic traders.

In the past 24 hours, the average trading volumes of SNX pairs rose 364 percent as 128 million SNX tokens changed hands.

Synthetix (SNX) Price Overview

From candlestick arrangements in the daily chart, buyers are firmly in control. Double-digit expansions versus ETH, BTC, and the greenback are enough confirmation, cementing buyers’ confidence.

At this pace, the DeFi protocol could be among the top dominant platforms helping the sub-sector lock over $20 billion worth of digital assets.

For scalpers, $17 is the immediate resistance. This level flashes with the 2.618 Fibonacci extensions within a range that bound prices for the better part of Q4 2020 starting from September. However, the next reasonable targets for swing traders and holders–as long as the SNX/USD pair trade above $11, is $22—the 3.618 Fibonacci extension level based on the same trade range.

With rising trading volumes soaking bear attempts, bulls appear in control. Therefore, pliable traders can expect prices to be bound within $11, $17, and $22, certifying bulls’ presence in upcoming sessions.

Synthetix (SNX) Market Movers

Synthetix allows trustless trading of crypto derivatives. It is one of the most popular in crypto circles.

On Jan 14, the protocol will release Castor. This about three weeks after the launch of Shaula.

We're kicking off the Shaula release now. During this time, expected to take up to several hours, SNX and Synth tokens will not be transferrable or exchangeable on-chain.

— Synthetix ⚔️ (@synthetix_io) December 24, 2020

Three improvement proposals (SIP) will be activated, including a multi-collateral bug fix. One SIP will involve migrating a new SNX escrow contract that supports liquidation of escrowed SNX and migration to Layer-2.

Also, under SIP-102, Synthetix will incorporate Optimism to enabled Layer-2 staking of SNX (not token swapping).

Synthetix is also rolling out a new 8k SNX weekly incentive to provide liquidity for sEUR on Curve Finance.

Introducing a new 8000 SNX per week incentive to provide sEUR liquidity to the new @CurveFinance Euro liquidity pool, which also pools EURS from @stasisnet! https://t.co/IEdvrnBWAa

— Synthetix ⚔️ (@synthetix_io) January 12, 2021

Synthetix (SNX) Price Prediction

Ahead of Castor, the SNX/USD maintains a bullish trend.

Buyers are in control if gains on the last day guides.

From the daily chart, the SNX price is trading within a bullish breakout pattern. Prices have doubled after surging above $8 and the four-month consolidation zone.

With every dip, aggressive traders can load up with targets at $17 and $22; reaction points based on the Fibonacci extension tools.

The SNX/USD price surge is with high trading volumes. The result is bull bars banding along the upper BB, soaking sell pressure of early this week in a trend continuation phase.

Immediate support is at $11, and the middle BB. Losses below this mark may see the SNX price fall back to $8 in a retest.

Conversely, sharp gains above $17 open SNX bulls to $22.

Chart courtesy of Trading View

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