SNX rose to its three-week high on Monday in response to a market-wide upward correction led by Bitcoin (BTC) and other top digital caps.
The Synthetix Project native token hit $ 9.59 after rising up to 50% for four days in a row. That included a strong 18.29% rebound in the previous day’s session, triggered by Bitcoin’s rise above its key resistance of $ 35,000. Altcoins tend to follow the price trends of the flagship digital asset.
But even more factors played a role during the comparatively higher price boom of the SNX. His jump appeared as speculators returned to bet optimistically on the entire decentralized finance (DeFi) ecosystem. In the seven-day adjusted timeframe, almost every top DeFi coin saw double digital gains including Uniswap (~ 16%), Aave (~ 24%), Compound (39.37%), among others.
The SNX / USD was up about 31% in the past seven days.
Ether (ETH), which hosts most of the DeFi projects on its public blockchain, also saw its ETH token increase by more than 10% in the past seven days.
VORTECS ™ data turned bullish ahead of new SNX price highs
Meanwhile, Cointelegraph Markets Pro’s VORTECS ™ data began to see a bullish outlook for the SNX in early July, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, current price movements and Twitter activity.
As can be seen in the graph above, the VORTECS ™ Score flashed green on July 4th at a score of 64, with the price continuing to climb above $ 9.
Synthetix TVL is approaching $ 1 billion
The 50% uptrend in SNX markets also pushed the total value of the Synthetix pools to just under $ 1 billion to $ 11 million. However, on a SNX token basis, as TVL reserves rebounded relative to the US dollar, they fell nearly 5 million units from the July 1 high of 116.25 million units.
In detail, Synthetix is a decentralized synthetic assets platform that provides blockchain exposure to traditional assets, including currencies, commodities, stocks and indices. The platform requires users to include their native SNX token as security in their smart contracts to secure their synthetic assets (synths). These synths track the prices of various assets that allow crypto users to trade peer-to-contract on the Synthetix Exchange.
Additionally, if users want to unlock their SNX, users will have to burn the part of their synths as debt. At its all-time high in December 2020, Synthetix’s smart contract had 168.37mm SNX tokens. The stocks decreased to 96.54 SNX tokens in February 2021. Since then, deposits have increased, albeit not in a straight line.
One reason for the rising Synthetix TVL could be higher annualized percentage returns (APY). For example, on Monday, SNX staking returned users with 39.30% APY, using Synthetix’s inflationary supply model. Thus, the SNX yields are much higher than those of a traditional yield investment (the yield on 10-year US Treasuries has been capped at 0.502-1.778% for the past 52 weeks).
Technical outlook for SNX
The latest SNX pump has driven its prices above a classic technical range defined by a $ 7 support and a $ 8.5 resistance. Historically, SNX / USD has tested the area twice as resistance but was only able to break through once in December 2020-January 2021.
A break out of the range puts SNX / USD on its way to the next resistance level near $ 10.54, which is the 23.6% Fib line of the Fibonacci retracement setup from a 27.172 swing high to $ 5.40 -Swing low coincides. The $ 10.54 is near the 50-day SNX 50-day moving average (the blue wave), creating a strong resistance confluence to limit the pair’s potential upside attempts.
Conversely, breaking below the $ 7-8.5 range risks plunging the SNX back to its previous session low of $ 5.40.
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