Latest Synthetix (SNX) Price Analysis

Deep Dive

1. Technical Rebound (Bullish Impact)

Overview: SNX’s 24h rally aligns with oversold signals: 7-day RSI hit 22.21 (severely oversold) on November 6, while the price held above the critical $0.796 support (200-day SMA). A bullish divergence formed as prices stabilized despite negative MACD trends.

What this means: Short-term traders capitalized on oversold conditions, triggering a relief rally. The 200-day SMA acted as a psychological floor, attracting buyers wary of deeper losses.

What to look out for: A close above $0.925 (7-day SMA) could signal further upside, while a drop below $0.796 risks resuming the downtrend.

2. Trading Competition & New Markets (Mixed Impact)

Overview: Synthetix’s Mainnet trading competition (launched October 20) entered its final phase, with 100 traders vying for a $1M prize. On November 6, the protocol added high-leverage markets (PUMP, ZEC, BNB) and mobile trading, boosting short-term engagement.

What this means: While the competition initially drove a 370% rally from September lows, recent profit-taking and a 30% drop in daily active addresses (Santiment) suggest fading momentum. However, the addition of 100x leverage options temporarily reignited speculative interest.

Key metric: Competition-related fees totaled $233,897 as of October 28 – a modest figure relative to SNX’s $292M market cap.

3. sUSD Rewards Extension (Bullish Impact)

Overview: On November 6, Synthetix extended sUSD deposit rewards until December 19, offering 10,000 SNX weekly and raffle prizes (ETH, NFTs). This followed a liquidity crunch in DeFi stablecoins like XUSD and USDX, which depegged sharply.

What this means: sUSD demand indirectly supports SNX, as stakers must collateralize positions with SNX tokens. The program incentivizes holding SNX to mint sUSD, creating buy pressure. However, sUSD itself remains below its $1 peg at $0.80 (April low: $0.68), reflecting lingering trust issues.

Conclusion

SNX’s rebound stems from tactical buying at key technical levels, fading competition hype, and synthetic dollar incentives – but faces headwinds from weak DeFi sentiment and SNX’s -43.5% yearly performance.

Key watch: Can SNX hold $0.85 to challenge the 7-day SMA ($0.925), or will DeFi’s stablecoin crisis spill over into broader protocol distrust? Monitor sUSD’s peg stability and competition fee trends for clues.

Deep Dive

1. Delisting Announcement (Bearish Impact)

Overview: ProBit Global announced on 26 October it will delist SNX and 47 other tokens on 7 November, citing platform quality and user protection. While withdrawals remain open until 8 December, the news fueled uncertainty.
What this means: Delistings often trigger panic selling due to reduced liquidity access and perceived project weakness. SNX’s 24h volume fell 41% alongside the price drop, indicating thinning liquidity. The market is pricing in risks of further exchange exits if sentiment deteriorates.

2. Technical Weakness (Bearish Impact)

Overview: SNX broke below the 78.6% Fibonacci retracement level ($1.26) and now trades at $0.80. The 7-day RSI (24.7) signals extreme oversold conditions, but the MACD histogram (-0.053) confirms bearish momentum.
What this means: Technical traders view the breakdown as a failure to hold key support, inviting short-term speculators to bet on further downside. The 200-day SMA at $0.796 is now critical – a sustained close below could trigger algorithmic selling.

3. Post-Rally Profit-Taking (Mixed Impact)

Overview: SNX rallied 28% over 90 days but has shed 20% this week. Santiment data shows a spike in dormant token movement, suggesting long-term holders are selling.
What this means: The sell-off reflects a cooling-off period after SNX’s Q3 surge. However, the lack of buyer support at lower levels (daily active addresses dropped sharply) indicates weak conviction for a near-term rebound.

Conclusion

SNX faces a trifecta of delisting anxiety, technical breakdowns, and profit-taking after earlier gains. While oversold conditions could spark a bounce, the $0.78 support level and ProBit’s 7 November delisting deadline loom as key tests.
Key watch: Can SNX hold the 200-day SMA ($0.796) to prevent a drop toward the yearly low of $0.587?