The Synthetix price has erased some of its earlier gains as traders took some profits ahead of its layer 2 launch. The SNX price is trading at $11.53, which is about 15% below its highest level on Monday. It has risen by more than 100% from its lowest level in July, bringing its total market capitalization to more than $1.33 billion.
Synthetix news. Synthetix is a leading Decentralized Finance (DeFi) project that is classified as a DEX. This means that it helps people trade synthetic derivatives of all types including stocks, commodities, and currencies. The platform is also used as a liquidity provider in some of the leading DeFi projects like Uniswap and Curve Finance.
In the past few months, the total value locked (TVL) in Synthetix has jumped to more than $1.3 billion. This trend will likely continue as the platform scales by launching on a layer 2 protocol. In a note last week, Synthetix founder said that exchanges on OΞ will be enabled in the week of July 26.
The final deployment date will happen when the council authorizes it. The initial Synths that will be supported will be sETH, sBTC, sLINK. Further, the price feed for SNX will be deployed by Chainlink. You can read this announcement here. In most times, the price of a cryptocurrency tends to rally ahead of a major launch or upgrade.
At the same time, on-chain data shows that the amount of inflows into Synthetix in the past seven days has been more than outflows. Data compiled by intotheblock shows that inflows were more than $40 million while outflows were $36 million.
The four-hour chart shows that the SNX price declined to $5.57 in June. It then bounced back and reached a high of $13.65 on Monday. Along the way, the coin has formed what looks like an ascending double-top pattern whose neckline is at $9.2200. It also seems to be forming an ascending wedge pattern. A rising wedge is usually a bearish signal. The coin is also being supported by the 25-day and 15-day moving averages.
Therefore, in my view, I suspect that the coin’s price will bounce back lower as traders target the next key support at $10, which is about 13% below the current level. The alternative scenario is where the price bounces back and retests the upper side of the wedge.
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