The SNX/USD exchange reached $13.76 on Monday for the first time since June 3. Synthetix (SNX) prices reached a one-month high on Monday as traders looked for alternative upside bets against a mixed cryptocurrency market. Bids for SNX/USD achieved an intraday high of $13.76 during the Asia-Pacific trading session, following an approximately 25% price rally that started Sunday. A flurry of technical and fundamental factors contributed to the sudden market demand for Synthetix tokens, including founder Kain Warwick's update on the project's much-awaited layer 2 solutions.
Layer 2 refers to the techniques for scaling blockchains by taking computation and transaction load from the parent layer and put them onto a base layer. Synthetix, an Ethereum-based synthetic asset platform, has been testing such scalability solutions since October 2020 to limit its dependency of Ethereum's higher gas and transaction fees model. Last Saturday, more than 12 hours before the SNX/USD rate started rallying, Warwick announced Synthetix would launch a layer 2 exchange in the week beginning July 26. He also revealed Optimistic Ethereum (OΞ) has the underlying technology that would back the synthetic asset (or Synths) trading platform.
"The initial Synths supported will be sETH, sBTC, and sLINK. In addition, the price feed for SNX will also be deployed by Chainlink," Warwick stated.
Optimistic Ethereum, formerly known as Plasma Group, proposes to scale Ethereum blockchain via a unique mechanism called Rollup. Rollups are Ethereum-based Smart Contracts that receive transaction data from the blockchain's main layer and send it to L2, where the computations take place. It then receives the computational result from the L2.
So far, the Optimism team has demonstrated that it could process more transactions with lower fees than Ethereum. Meanwhile, Synthetix has chosen to become one of the earliest Optimism adopters in anticipation that it would inspire other decentralized finance projects to adopt it as well.
"If other major DeFi protocols can adopt Optimism, all transactions between them will be able to remain on L2," wrote Will Comyns, a researcher at Messari, in his June 23 report. "This means users will not have to wait an entire week for their funds to be integrated back on the Ethereum main chain before they can interact with another protocol."
So far, the "optimistic" fundamental has proved beneficial to raise the Synthetix prices. That is partly because SNX serves as a collateral token to create Synth. In return, stakers receive additional SNX on their staked amount through Synthetix's "inflationary supply" model. They also receive a fixed amount of fees in SNX on the trading of the Synth.
Synthetix's latest 25% pump has pushed its 20-day exponential moving average (20-day EMA; the green wave) above its 50-day simple moving average (50-day SMA; the blue wave). As a result, the 20-50 MA golden cross has been instrumental in predicting the price rally from November 2020 to March 2021.
Nonetheless, SNX/USD remains at crossroads with the $13.85-$14.80 resistance area, a range with a history of capping the pair's upside attempts, and which was also holding as support during its correction period between February and May 2021. Closing above the resistance area would have bulls test the following Fibonacci range of $16.37-$17.69.
Conversely, a sharp pullback from the $13.85-$14.80 would likely push SNX/USD towards the $11.92-$10.74 range. Such a move would also risk invalidating the 20-50 golden cross setup.
Meanwhile, VORTECS™ data from Cointelegraph Markets Pro started rising 24 hours ahead of the Sunday rally, thereby detecting a bullish outlook for SNX prior to the recent price rise. 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, recent price movements, and Twitter activity.
The VORTECS™ Score flashed green at midnight Sunday with a peak score of 79 — up from as low as 47 in 24 hours — with the price continuing to climb higher to $13.88 thereafter.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 79.2% | 43 | $71 436.13 | 2.06% | 6.71% | $1 404 912 407 655 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ETH | Ethereum predictions | 76% | 48 | $3 602.46 | 1.34% | 2.09% | $432 554 360 834 | ||
3 | USDT | Tether predictions | 96% | 1 | $1.000154 | 0.04% | 0.01% | $104 470 213 004 | ||
4 | BNB | Binance Coin predictions | 64.8% | 79 | $586.89 | 2.09% | 4.62% | $87 761 927 045 | ||
5 | SOL | Solana predictions | 56.8% | 89 | $188.85 | 2.07% | 0.47% | $83 902 469 694 | ||
6 | XRP | XRP predictions | 82.4% | 31 | $0.624030 | 0.92% | -0.67% | $34 249 397 653 | ||
7 | USDC | USD Coin predictions | 94.8% | 2 | $1.000035 | 0% | -0.01% | $32 218 015 699 | ||
8 | DOGE | Dogecoin predictions | 64.4% | 68 | $0.219096 | 17.46% | 39.84% | $31 473 889 194 | ||
9 | ADA | Cardano predictions | 70% | 67 | $0.656376 | 1.99% | 3.47% | $23 354 633 116 | ||
10 | AVAX | Avalanche predictions | 56.4% | 88 | $54.81 | 1.27% | -0.16% | $20 685 210 368 | ||
11 | SHIB | SHIBA INU predictions | 54% | 94 | $0.000032 | 6.24% | 16.77% | $18 902 138 058 | ||
12 | TON | Toncoin predictions | 59.2% | 88 | $5.06 | 2.63% | 22.20% | $17 575 966 982 | ||
13 | DOT | Polkadot predictions | 70.4% | 52 | $9.58 | 0.13% | 2.48% | $13 674 573 302 | ||
14 | LINK | Chainlink predictions | 75.6% | 42 | $19.39 | -0.34% | 3.91% | $11 382 976 397 | ||
15 | BCH | Bitcoin Cash predictions | 71.6% | 60 | $568.52 | 4.80% | 34.60% | $11 189 385 217 |
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2024 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.