SNX Price Prediction As Traders Take Notice Of Synthetix Perpetual Futures

Join Our Telegram channel to stay up to date on breaking news coverage

Synthetix (SNX) price witnessed an extremely volatile market a day after it recorded a massive surge in trading volume on January 20. The bears came into the market in their numbers to confront the bulls as they attempted to bag more profits for investors.

On February 1, bulls took back everything the bears had taken from them, raising the price to a high of $2.72, which gave them an edge over their counterparts in the new month. Since then, bulls have not given any room for opposing forces, countering every attempt with a ton load of effort that has kept SNX price above $2.7.

At the time of writing, SNX price was trading at $2.87 as bulls tried to build from the Monday gains. The token is up 12.5% in the last day, with a 24-hour trading volume of $120.97 million. Note that this trading volume is a 113.12% increase from what was recorded and points to rigorous on-chain activity on the Synthetix network. Similarly, SNX live market cap is also up by a striking 13% to 720.3 in the last day, bringing it closer to the CoinMarketCap top 50, at #65.

Synthetix New Perpetual Futures (Perps) Market

It is a tough day for the bears in the Synthetix market as traders take notice of Synthetix perpetual futures (Perps), according to an official post.

It's great to see traders taking notice of Synthetix Perps!

With low fees, fast execution, adaptive funding rates & a price impact function – what's not to love? Excited to see how the rest of the SNX ecosystem integrates with perps to create innovative products. https://t.co/GNMfiZAI5B

— Synthetix ⚔️ (@synthetix_io) February 6, 2023

Synthetix went live with the Eltanin release on February 6, a move that will see SNX add 22 new markets to Synthetix Perps soon. The news was announced in an official blog, with the project leads promising, “There will be no downtime during the release.”

The Eltanin release has begun! SNX is adding 22 new markets to Synthetix Perps soon.

Governance-approved SCCPs can make these markets available for trading on frontends @Kwenta_io & @DecentrexHQ in the coming days.

Stay tuned! ?https://t.co/TE038blsSe pic.twitter.com/mVNJYlhMQ7

— Synthetix ⚔️ (@synthetix_io) February 6, 2023

The release includes 1) SIP-295: Addition of Perps V1 markets to Synthetix Perps V2, and 2) SIP-2000: Addition of ATOM, AXS, FLOW, FTM, NEAR, AUD/USD, and GBP/USD to Perps V2.

According to the blog, Synthetix Governance has approved two new SIPs, which will soon add 22 new markets to Synthetix Perps. “These markets include those from Perps V1 (BTC, LINK, SOL, AVAX, AAVE, UNI, MATIC, XAU, XAG, EUR/USD, APE, DYDX, BNB, OP, and DOGE) and new markets (ATOM, AXS, FLOW, FTM, NEAR, AUD/USD, and GBP/USD).”

Once the release is complete, every market within the two SIPs “will be launched as paused,” so they will not be available for trading initially because the approved SIPs demand that every market is unpaused and configured with the relevant values via an SCCP. Nevertheless, the developers have assured that trading will become available for these new markets after governance approves the SCCPs.

Synthetix Perps Trading

The blog also highlights that users can trade Synthetix Perps on two front-ends, which integrate with SNX liquidity and support perps trading. That is, Kwenta and Decentrex. It is worth mentioning that Synthetix DAO does not provide any trading front-ends directly. On the contrary, it depends on third-party user-facing protocols to serve traders.

SNX Price Responds to Perps Market Release

Synthetix (SNX) price has reacted to the release of the perpetual futures market, soaring 15% between February 6 and 7. The token was trading with a bullish bias as bulls set their mind to recording more gains.

At the time of writing, SNX was trading at $2.8 as bulls confronted the first roadblock at $3.0. An increase in buying pressure from this level would set SNX on the path to its ultimate target. However, from where it stood, the first logical move was the 107% Fibonacci retracement at $3.097.

Suppose bulls get here, and their ambition is still intact. In that case, the price could increase to retag the 132% Fibonacci retracement at $3.49 or, in highly ambitious cases, go as far as the 153% Fibonacci retracement at $3.82. The move would indicate a 34.38% increase from the current levels.

The last time Synthetix price tagged this level was around mid-August before subsequent catastrophes hit the crypto market and worsened the crypto winter.

SNX/USD Daily Chart

SNX Price Chart Feb 7 — TtradingView Chart: SNX/USD

The SNX price had strong downward support, solidifying the bullish outlook. For starters, the 50-day Simple Moving Average (SMA) was moving upwards, just like the Relative Strength Index (RSI). These showed that more buyers were entering the SNX market, and the price could increase.

In addition, the token price was just above the 200-day SMA at $2.417, which meant that bulls had a potential area for a breather in case they needed to re-strategize. If this level did not hold, they could still rely on the 50-day SMA at $2.021 or the 100-day SMA at $1.954.

The Moving Average Convergence Divergence (MACD) was also moving in the positive region, with the histograms turning from red to green, showing that the bulls were in control against the bears. The RSI at 64 also solidified the case, hinting that there was still more room to the upside.

On the downside, if investors decided this was the right time to book profits, they would risk SNX value depreciating. The first logical target is the 78.6% Fibonacci retracement at $2.651. An increase in selling pressure past this level could send the price down to the 50% Fibonacci retracement at $2.202 or, in extreme sell-off cases, a revisit to the $1.416 support floor.

SNX Alternatives

While Synthetix (SNX) bulls look to record more gains, consider Meta Masters Guild, whose native token MEMAG is going for discounted prices of 0.019 USDT each. So far, the project’s presale has raised more than $3.323 million, with only two days left to the next stage.

Invest in MEMAG before the next stage begins, and the token price goes higher. By investing, you position yourself among investors who will enjoy early-stage profits. Note also that analysts say MEMAG will do very well in 2023.

Join Our Telegram channel to stay up to date on breaking news coverage