SNX Price Soars 7% as Synthetix Founder Talks Tough on sUSD Depeg Fix | Coinspeaker

Key Notes

• Synthetix (SNX) has skyrocketed 7% in the past day, reaching a daily high of $0.6851.
• SNX has formed a falling wedge pattern on the daily chart, suggesting a breakout to $1.82.
• Overall, SNX is down more than 21% in the past week after the depeg of sUSD stablecoin.

The price of Synthetix’s native token SNX

Snx $0.68

24h volatility: 5.8%

Market cap: $229.22 M

Vol. 24h: $26.35 M

experienced a significant surge of 7% in the last 24 hours, reaching a daily high of $0.6851. This upward movement was accompanied by an almost 40% spike in trading volume, indicating strong buying interest

However, despite this recent rally, SNX is still down nearly 21% over the past 30 days, reflecting the uncertainty surrounding the protocol’s stablecoin, sUSD.

Technical Analysis Points to Potential Rebound

SNX has formed a falling wedge pattern. If it breaks decisively above the upper trendline of the wedge with sufficient volume, it could signal a bullish reversal. The potential upside target for this pattern is in the vicinity of $1.82.

On the other hand, the MACD indicator shows the MACD line (blue) currently below the signal line (orange), indicating bearish momentum. However, the histogram is showing some lighter red bars, suggesting that the selling pressure might be decreasing

A potential bullish crossover of the MACD line above the signal line would signal a shift in momentum and could support further upward movement.

SNX Price Chart | Source: TradingView

Moreover, applying Fibonacci retracement levels from the recent high around $0.86 down to the current low around $0.55 reveals key levels of resistance

The recent 7% surge has seen SNX test the 0.236 Fibonacci retracement level around $0.67. If this level can be decisively broken and held, the next potential resistance targets would be the 0.382 level around $0.73 and the 0.5 Fibonacci level around $0.80.

However, the depeg of sUSD and the uncertainty surrounding its resolution could act as a significant headwind for SNX. Failure to address the stablecoin’s issues could lead to renewed selling pressure on SNX.

Depeg of sUSD and Synthetix Founder’s Ultimatum

The price volatility in SNX coincides with the ongoing depeg of sUSD, which is currently trading at $0.7684, a 2.2% decrease in the last day and significantly below its intended $1 peg, shows CoinMarketCap data.

A recent protocol overhaul SIP 420 appeared to have inadvertently destabilized the stablecoin by removing a key arbitrage mechanism

The absence of a peg stability module has left sUSD vulnerable to sustained sell pressure, with thin liquidity and concentrated automated market maker (AMM) pools exacerbating price fluctuations, as noted by Okto Chain’s Minal Thukral

In a bid to address the sUSD depeg, Synthetix founder Kain Warwick has taken a firm stance, urging SNX stakers to actively participate in a newly launched staking mechanism

The sUSD 420 Pool, introduced on April 18, incentivizes stakers to lock their sUSD for a year in exchange for a share of 5 million SNX tokens over 12 months

Warwick made it clear that if sufficient participation isn’t observed once the user interface goes live, he is prepared to exert “the stick” on stakers within the sUSD 420 pool to ensure the mechanism’s success.

nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.