The crypto winter has seen many assets that have come out as winners. The latest in line is Synthetix, a native token of the L2 scaling protocol that has grown by 100% over the weekend.
Synthetix has been the top crypto gainer in the last two days, seeing a +100% price uptick from $1.7 to $3.5. Everyone from crypto Twitter to long-time watchers is wondering the reason behind such a rapid surge in this bear market.
Synthetix Soaring since 19th June 2022
SNX – Synethix has soared by 1.94% in the last 24 hours and is trading at $3.2. Its current market cap is $381.3 million, and the charts say it’s continually moving upwards.
The chart took a bullish engulfing pattern on 19th June, with the green candle rising by a massive 24.36%. The pattern that emerged the next day was even more bullish, with an over 56.2% uptick. While the SNX took a little step into the red the next day, it wasn’t enough to create any worry. At the time of writing, the token is still walking in the green zone and has the wick comparable to April 2022.
The token slumped just a bit and has a lower resistance point of $3.20. However, it is not a strong resistance as SNX might overtake it in the next few hours. If it crosses the resistance level, it will get close to the $4 price point – adding more points to its bull run.
What do the experts predict about Synthetix Price
Synthetix Price Prediction 2022
The native token of the Layer-2scaling solution has seen a massive uptick, and since then, the experts have started to make several Synthetix Price Predictions.
Over the past two days, the token’s passive 100% uptick has allowed the protocol to rack up more than $1.02 trading fees – bypassing Bitcoin’s daily performance by five times.
Market predictors are divided into two camps. Some see this uptick as a sign of market recovery.
Derivatives protocol @synthetix_io now sits among the top earning crypto protocols 💸
— The Defiant (@DefiantNews) June 22, 2022
And others who maintain that it’s another pump and dump scheme to give investors false hope.
another dog shit coin, pumped by 1inch… wait they dump it, is gonna be epic
— DrCoin (@DrCoin27) June 22, 2022
The truth of the matter is that both arguments have merits. The price uptick is due to Synthetic’s recent collaboration with Curve Finance. Curve Finance is a liquidity provider that has teamed up with the layer-2 solutions protocols to create Curve pools for Synthetic Ether (sETH)/Ether (ETH). Synthetic Bitcoin (sBTC)/Bitcoin(BTC) and Synthetic U. Dolar (sUSD)/3CRV.
The pool will allow the investors to cover their synth derivatives such as sBTC to Bitcoin cheaply.
It is common for the news of such collaborations to increase the price by a massive margin. Historically, such pumps get self-corrected within a span of a few days. It has only been two days since the announcement. So, there is no certainty whether the price range will hold up.
On the other hand, it is hard to ignore a 100% uptick even in this bear market.
That being said, the collaboration provides LPs for ETH, Bitcoin, and USD. The former two have seen many ups and downs in the past few days. Bitcoin is struggling to maintain its balance over $20k levels, and the bulls are trying hard to keep Ethereum above $1k. It means that the price activity of these tokens will directly influence SNX price.
We recommend that investors take a step back and wait for the retrace. The current market is still volatile, and every investment now counts more than ever.
What is Synthetix?
SNX is the native token of the DeFi system known as Synthetix. It is a unique protocol that caters to crypto and non-crypto assets. Based on the Ethereum Blockchain, Synthetic provides highly liquid assets known as synths.
Synths mimic the real world and crypto-assets and provide high returns to investors without needing HODLing.
The protocol is geared to introduce the benefits of blockchain to a larger, non-crypto ecosystem by making room for non-blockchain assets.
Those bullish about the SNX say it would reach $50 by 2030.
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