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All you need to know about Synthetix’s latest move

2min Read

Synthetix made an important announcement about extending its perps support for seven cryptocurrencies. However, SNX was the victim of some selling pressure in the last 24 hours.

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  • Synthetix makes a move to expand its perps portfolio with seven additional digital assets.
  • SNX sees a resurgence of sell pressure after previously delivering a bullish performance.

The Synthetix network just announced that it extended its perps support for at least seven extra assets. This move may deliver more utility at a time when its native token SNX has been delivering a bullish performance.

Read Synthetix’s [SNX] price prediction 2023-24

Will Synthetix’s newly added perps fuel more bullish confidence? First, let’s take a deeper dive into what the latest announcement from the network is all about. For those that are not aware, perps can be described as on-chain futures options. They are ideal for anyone looking to trade crypto derivatives instead of spot assets.

Some of the underlying assets for which Synthetix just launched perps have been in high demand, recently and Pepe is an ideal example. This means Synthetix is looking to tap into the excitement around these assets. Strong demand for the newly supported perps may fuel more utility for the SNX token, but is it enough to support SNX’s upside?

SNX bulls encounter resistance at the 50-day MA

Synthetix’s native cryptocurrency SNX delivered a 33% upside since 12 May. This bullish performance outperformed some of the top cryptocurrencies including Bitcoin and Ethereum.

Although the latest Synthetix news revealed the likelihood of more demand, SNX’s price action demonstrated some selling pressure in the last 24 hours. This was after a brief surge above the 50-day moving average.

SNX price action

Source: TradingView

Note that the pullback occurred after its MFI dipped into overbought territory and right above the RSI’s mid-level. SNX volume registered a substantial volume spike in the last 24 hours. This was also consistent with a spike in daily active addresses to the highest point so far this week.

Synthetix volume and active addresses

Source: Santiment

So why did the price fall despite the volume and active addresses surge? The bearish outcome in the last 24 hours occurred a day after the supply held by top addresses registered some outflows.

Meanwhile, there was an increase in the supply held on exchanges within the last three days. This indicated a build-up of sell pressure.

SNX supply on exchanges and supply held by top addresses.

Source: Santiment

A possible explanation for the resurgence of sell pressure was that whales have been securing short-term profits. The surge in volume reflected an influx of liquidity from retail traders, hence offering exit liquidity for whales.

Is your portfolio green? Check out the Synthetix Profit Calculator

It is still too early to tell whether SNX will extend this pullback or whether this is just a bit of a cool-down before the rally continues. Nevertheless, the recently added perps may fuel long-term demand for the SNX token.


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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