Synthetix price has lost the bullish momentum it had in August as the broad cryptocurrency and stock markets recoil. The SNX token was trading at about $3 on Friday morning, which was about 33% below its highest point in August. Its total market cap has retreated to about $700 million.
Synthetix is a leading blockchain project that has an important role in the DeFi industry. It is built on top of Ethereum and Optimism projects. Synthetic gives developers tools that make it possible to create synthetic assets of top assets like currencies, commodities, and stocks. It also became a top ThorChain competitor when it launched perpetual futures assets.
Synthetix price will next react to the upcoming Ethereum merge that will start on September 6 and conclude on 15. In a statement, the developers said that they will suspend all Synthetix contracts on both Ethereum and Optimism ahead of the merge. They will then unsuspend these contracts after the merge.
Meanwhile, the developers added more assets to its Synthetix Perp Futures on Kwenta. The new markets are BNB and DOGE. This means that it will be possible for people to leverage trade them through its perpetual futures on the debt ratio.
The four-hour chart shows that the Synthetix price has been in a consolidation phase in the past few days. It has dropped by over 33% from its highest point in August and has moved below the 25-day and 50-day moving averages. It has also formed a small head and shoulders pattern and is above the ascending trendline shown in black.
Therefore, the SNX price will likely have a bearish breakout in the coming days. If this happens, the next key support level to watch will be at $2.5, which is about 15% below the current price. A move above the resistance at $3.2 will invalidate the bearish view.
This post was last modified on Sep 02, 2022, 06:53 BST 06:53