Synthetix price lost the bullish momentum it had in August as the vast cryptocurrency and stock markets retreated. The SNX token was trading around $3 on Friday morning, around 33% below its August high. Its total market capitalization has shrunk to around $700 million.
Ethereum merger before
Synthetix is a leading blockchain project that plays an important role in the DeFi industry. It is built on Ethereum and Optimism projects. Synthetic provides tools for developers to create synthetic assets from major assets such as currencies, commodities, and stocks. It also became one of ThorChain’s main competitors when it launched perpetual futures assets.
Synthetix price will then react to the upcoming Ethereum merger which will begin on September 6 and end on September 15. In a statement, the developers said they will suspend all Synthetix contracts on Ethereum and Optimism before the merger. They will then lift these contracts after the merger.
Meanwhile, the developers added more assets to its Synthetix Perp Futures on Kwenta. The new markets are BNB and DOGE. This means that it will be possible for people to profit from their trade through its perpetual leverage rate futures.
Synthetix Price Prediction
The four-hour chart shows that Synthetix price has been in a consolidation phase for the past few days. It has fallen more than 33% from its peak in August and has broken below the 25- and 50-day moving averages. It has also formed a small head and shoulders pattern and is above the ascending trendline shown in black.
Therefore, the price of SNX is likely to experience a bearish breakout in the coming days. If that happens, the next key support level to watch will be $2.5, which is around 15% lower than the current price. A move above the resistance at $3.2 will invalidate the bearish view.