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Can Synthetix Perps v2 achievement save SNX from the bears

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Can Synthetix Perps v2 achievement save SNX from the bears
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  • SNX’s revenue and fees spiked in recent days, but metrics were bearish.
  • Market indicators showed signs of recovery and suggested a price uptick. 

Synthetix [SNX] continues to make news with its achievements, the latest being Perps V2. Synthetix revealed in a recent tweet that Perps V2’s cumulative volume reached nearly $2 billion, while its daily volume somewhat touched $115 million. This was a commendable achievement, as only a week ago, Perp V2’s daily volume touched $100 million. 

Realistic or not, here’s SNX market cap in BTC‘s terms

Thanks to the massive increase in volume, Synthetix’s fees and revenue also spiked over the last few days. As per Token Terminal, Synthetix’s fees and revenue gained upward momentum since 7 March and later spiked substantially on 12 March.

Source: Token Terminal

While these achievements suggested growth for the network, the same might not be true for its native token, SNX. 

Here is the catch

SNX network’s growth seemed impressive, but the token’s state might be questionable, thanks to the whale which recently dumped SNX.

As per Lookonchain, an address transferred 2.66 million SNX to Binance, which was worth $7.5 million. The same account had earlier spent 15 million USDC to buy 5,436,960 SNX from Synthetix Treasury between 14 and 16 March.

This looked bearish and can increase selling pressure, which can, in turn, push SNX’s price down.

Talking about price, SNX had already registered a daily decline of over 5%. At press time, it was trading at $2.80 with a market capitalization of more than $710 million. 

SNX in trouble?

A look at SNX’s on-chain metrics gave more reasons to worry, as it suggested a further price drop in the following days.

Consider this– SNX’s Binance funding rate declined considerably, indicating less demand from the derivatives market. Exchange inflows have also spiked lately, which is typically a bearish signal.

In addition to that, SNX’s development activity declined over the last week, suggesting fewer efforts from the developers in improving the network. 

Source: Santiment

Read Synthetix’s [SNX] Price Prediction 2023-24

Here is the good news

While the metrics supported the bears, SNX’s daily chart gave hope for a trend reversal. The Money Flow Index (MFI) bounced from the neutral mark and was headed northward, which looked optimistic.

The Chaikin Money Flow (CMF) also followed the same trend and moved upward. However, the MACD displayed a bearish advantage in the market, which can be troublesome for SNX. 

Source: TradingView

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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