The Synthetix price popped to the highest level since September 7th as the total SNX stake jumped to more than $1.56 billion. SNX has a market capitalisation of more than $1.42 billion, making it the 7.8-biggest cryptocurrency in the world. It is slightly below Decentraland’s MANA and slightly above SushiSwap.
Synthetix is a leading Decentralized Finance (DEFI) platform that provides liquidity to most DeFi platforms. The platform allows people to build Synths based on hundreds of assets. Some of the most popular Synths are sEUR, sUSD, sFTSE, and sTSLA, among others.
The SNX price is rallying as the total value locked in the network jumped to more than $1.5 billion. This is a significant increase considering that it was less than $1 billion a few months ago.
The Synthetix price is also rising as the network prepares a series of protocol upgrades known as The Mirfak release. This release will have several features like depreciating EtherCollateral loans, debt cache event consistency, inflation diversion for 1.2 incentives, and redeem depreciated synths. In most periods, the prices of cryptocurrencies tend to jump ahead of a major protocol upgrade.
The daily chart shows that the SNX price found strong support at $5.910 in June. Since then, it has risen by more than 127% mostly because of the strong performance of cryptocurrencies.
Still, the coin has found a strong resistance at around $14.50. It is along the 61.8% Fibonacci retracement level and is slightly above the 25-day and 50-day moving averages.
Therefore, despite today’s jump, the outlook of Synthetix is relatively neutral since a bullish break-out will only be confirmed if it moves above the resistance at $14.50.
On the flip side, a drop below the key support at $10 will invalidate any bullish thesis.