22
$SNX, the native token of the Ethereum-based decentralized perpetual futures protocol Synthetix, has defied today’s broader market downturn to emerge as the top-performing altcoin. Its price has surged by 24% over the past 24 hours amid renewed demand.
The surge follows growing anticipation for the launch of Synthetix’s new perpetuals exchange on Ethereum and a trading competition scheduled for October 20. However, on-chain and technical indicators suggest that the momentum may not be sustainable in the short term.
$SNX Momentum Builds Ahead of $1 Million Contest, but Bearish Bets Signal Caution
Ahead of launching the first perpetuals DEX on the Ethereum mainnet, scheduled for later this quarter, Synthetix has announced a well-timed trading competition on October 20, with a $1 million prize for the top winner.
Fueled by the growing hype around the upcoming event and the protocol’s imminent exchange launch, Synthetix’s native token, $SNX, has seen a surge in trading activity, sending its price soaring. Trading at $2.11 at press time, the altcoin has climbed 22% since Sunday.
However, on-chain and technical indicators suggest that this momentum may not last.
Data from Coinglass shows that $SNX’s long/short ratio has remained flat below one since September 22, indicating that bearish positioning persists despite the sharp price upswing.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
$SNX Long/Short Ratio.">
The long/short ratio compares the number of traders holding long positions against those holding shorts. A reading below one, as seen with $SNX, reflects a market with bearish expectations.
Its persistent flatness suggests that most traders are still betting against the token, with no bullish shift in sentiment even as the $SNX price climbs. This hints at the likelihood of a pullback in the near term.
Meanwhile, the Relative Strength Index (RSI) shows $SNX has entered overbought territory, signaling that the token may be due for a cooldown. As of this writing, the key momentum indicator sits at 72.62.
$SNX Relative Strength Index.">
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100. Values above 70 suggest that the asset is overbought and due for a price decline, while values under 30 indicate that the asset is oversold and may witness a rebound.
$SNX’s current RSI reading signals that the altcoin is overextended and could face a short-term correction.
$2.58 Breakout or $1.77 Retest?
If momentum stalls and traders begin taking profits, $SNX could retrace some of its gains in the coming sessions. In that scenario, its price could fall toward $1.778.
Conversely, if renewed buying pressure is sustained, as the trading competition nears, the token could consolidate at higher levels. It could breach the resistance at $2.131 and charge towards $2.580.
The post Synthetix ($SNX) Surges 24% but Here’s Why Traders Aren’t Buying the Hype appeared first on BeInCrypto.
thecryptobasic.com
1
finbold.com
cointelegraph.com
u.today