Synthetix price jumped to a multi-month high as the developers made a major announcement on a new perpetual futures product, and as whales and smart money investors accumulated. The SNX price jumped to a high of $1.240, up by 155% from the year-to-date low.
SNX Price Jumps Ahead of Synthetix Perps
Synthetix is one of the oldest players in the decentralized crypto futures industry. At its peak, it was handling billions of dollars, an amount that has dropped sharply in the past few years.
Data compiled by DeFi Llama shows that its perpetual futures exchange handled almost $6 billion in August 2023. This figure dropped to just $57 million in August this year.
One reason for this is that the industry has become highly competitive, with Hyperliquid gaining the most market share.
Now, Synthetix is working on a comeback. In an X post this week, the company said that it was launching its perp DEX on Ethereum. It is now running a trading competition with a $1 million reward.
Synthetix aims to compete with some of the fastest-growing companies in the crypto industry. In addition to Hyperliuid, other top players in the industry are Aster, Lighter, Jupiter, Orderly, and Avantis.
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The perps industry has become the biggest part in the crypto industry. Data shows that the industry handled $797 billion so far this month, up from $366 billion in January this year.
On-chain data shows that the amount of SNX tokens on exchange has dropped sharply in the past few days. It moved to 86.8 million on Friday, down from 92 million when the month started. Falling exchange reserves is a sign that investors are not selling their tokens, which is a good thing.
Synthetix Price Technical Analysis
The daily timeframe chart shows that the SNX price has moved sideways in the past few months. It has remained inside the narrow channel at $0.536 and $0.96 since March this year. That could be a sign that it was in the accumulation phase of the Wyckoff Theory.
SNX price has moved above the upper side of the channel ahead of the perpetual exchange launch. It has moved above the 50-day and 100-day Exponential Moving Averages (EMA).
It moved to the 23.6% Fibonacci Retracement level. Therefore, the token will likely continue rising as bulls target the 38.2% retracement level at $1.726, which is about 63% above the current level.
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