Bitcoin
BTC$48 068.38

-0.43%

Ethereum
ETH$3 564.24

-1.78%

Cardano
ADA$2.43

-1.86%

Binance Coin
BNB$423.38

-1.83%

Tether
USDT$1.000511

0.01%

XRP
XRP$1.096014

-2.04%

Synthetix hits one-month high as SNX rallies 25% ahead of layer 2 exchange launch


13 Jul 2021   #Synthetix Network

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.

A new synthetic exchange underway

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.

Golden cross

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.

VORTECS™ data leaned bullish prior to SNX rally

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.


Related

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 86.4% 24 $48 068.38 -0.43% 2.90% $904 552 592 109 $30 966 097 189
2 Ethereum (ETH) ETH Ethereum predictions 72% 52 $3 564.24 -1.78% 3.14% $418 997 277 161 $18 764 428 420
3 Cardano (ADA) ADA Cardano predictions 68% 64 $2.43 -1.86% -4.99% $77 762 171 546 $3 085 080 557
4 Binance Coin (BNB) BNB Binance Coin predictions 63.6% 70 $423.38 -1.83% -1.23% $71 186 613 232 $1 670 523 937
5 Tether (USDT) USDT Tether predictions 96% 1 $1.000511 0.01% 0.05% $68 288 855 645 $74 100 163 467
6 XRP (XRP) XRP XRP predictions 70.4% 55 $1.096014 -2.04% -3.72% $51 098 642 600 $2 972 959 907
7 Solana (SOL) SOL Solana predictions 58.4% 89 $149.74 -5.57% -21.61% $44 447 194 000 $3 259 409 601
8 Polkadot (DOT) DOT Polkadot predictions 59.2% 83 $36.69 2.33% 14.49% $36 235 518 897 $2 308 494 829
9 Dogecoin (DOGE) DOGE Dogecoin predictions 69.2% 65 $0.257382 4.84% 0.32% $33 796 922 711 $1 760 021 804
10 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000184 0.01% 0.02% $29 237 308 733 $2 846 778 419
11 UniSwap (UNI) UNI UniSwap predictions 69.6% 56 $25.95 -4.24% 8.79% $15 869 589 993 $590 249 626
12 Terra (LUNA) LUNA Terra predictions 66.4% 67 $36.55 0.26% 12.35% $14 691 406 586 $1 543 465 878
13 Avalanche (AVAX) AVAX Avalanche predictions 67.6% 69 $64.75 9.96% 46.82% $14 264 323 937 $2 618 327 427
14 Chainlink (LINK) LINK Chainlink predictions 73.6% 56 $30.07 -4.45% 3.96% $13 594 035 693 $1 522 191 986
15 Binance USD (BUSD) BUSD Binance USD predictions 90.8% 1 $1.000216 0.01% 0.02% $12 747 588 570 $6 369 639 162

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 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.