Synthetix: SNX and its stable coin could have a rally
Synthetix [SNX] has managed to post a solid rally of more than 10% since October 17. This performance means it outperforms many top cryptocurrencies during the same period. But can SNX catch the trend?
Synthetix (SNX) price prediction for 2022-2023
SNX's performance may not be just a fluke, especially considering that most of its major counterparts hit the lower digits. Digging deeper into Synthetix reveals a possible advantage related to the demand for stablecoins.
Synthetix's sUSD stablecoin has seen an explosive volume over the past 24 hours, over 150%. Its 24-hour trading volume increased by just over half a million, while its market capitalization increased by over $2 million. This confirms strong demand for stablecoins, which may have triggered higher demand for SNX.
Momentum for a SNX bull run
SNX's latest bull run can be seen as a result of last week's bullish performance. Its price of $2.34 on October 17 represents a 25% increase from the recent local low, which almost retested the June low.
The SNX's recent low also means it is down 137% from its late-July high. Some conflict is also expected now around the 50 level of the Relative Strength Index (RSI). Still, a little more could happen if the latest pivot marks the start of a relief rally to the upside.
The strong increase in active transactions comes with the current bullish momentum of SNX. This confirms the return of bullish volume, especially in the last 24 hours.
The observation of active addresses reflects the current character of short-term demand. A look at SNX streams can help provide more clarity as to whether this is the start of a sell-off.
The SNX supply dynamics also show a drop in the number of cryptocurrencies on exchanges. In addition, the supply of foreign exchange has increased by a considerable margin over the past seven days.
In addition, supply figures confirm that a significant amount of SNX has moved out of exchanges and into private wallets. While these observations indicate a higher probability of a bullish time ahead, they do not necessarily provide a guarantee of such an outcome.
Higher demand for sUSD could be a clue that traders are bracing for more deals ahead and this drives demand for stablecoins. Other drivers of demand for SNX may also emerge. For example, demand for sports betting could also drive cryptocurrency up in the run-up to the upcoming world soccer tournament.
Overtime Markets, a sports betting platform built by Thales, is strategically positioned to drive this demand from the sports betting industry. This is because Thales is derived from the Synthetix network.
Oct 18, 2022