The Synthetix price is hovering at a key resistance level as demand for the coin rises. The SNX coin is trading at $13.70, which is slightly below the weekend high of $14.35. It has a total market capitalization of more than $1.57 billion, making it the 72nd biggest cryptocurrency in the world.
What is Synthetix?
Synthetix is one of the biggest Australian blockchain projects. The project was started by Ken Warwick, a computer scientist who saw an opportunity in the decentralized finance (DeFi) industry.
Synthetic is a DeFi platform that provides liqudity to other Decentralized Exchanges (DEXes). In the past few weeks, the total value locked in the ecosystem has jumped to more than $1.5 billion. This is notable because this value was less than $1 billion a few months ago.
The network also helps people build their own derivatives that are known as synths. To date, the most popular synths created are sUSD, sEUR, sJPY, and sGBP. There are also synths that tracks stocks, commodities, and other cryptocurrencies.
People use these synths because they eliminate some of the challenges faced by real assets. For example, trading between synths is usually cheaper. Also, it eliminates slippage, which is a popular concept across other assets.
The Synthetix price has rallied as part of the other altcoins and DeFi rally. In the past few weeks, the price of most altcoins like Ethereum and Cardano has jumped by more than 50%. At the same time, the total value locked in all DeFi platforms tracked by DeFi Pulse has jumped to more than $88 billion.
Meanwhile, the SNX price rallied after the key exchanges went live on layer 2. The process is going through testing, which is working for synths like sUSD, sBTC, and sETH.
Synthetic price prediction
The four-hour chart shows that the SNX price has been in a strong bullish trend. Recently, though, the price has struggled quite a bit. It is trading at $13.70, which is an important level considering that it was the highest level on July 12.
At the same time, the coin has formed an ascending channel pattern that is shown in blue. The current price is slightly below the upper side of this pattern. Also, the coin seems like it is forming a rising ascending channel whose neckline is at $11.
Therefore, a pullback to the lower side of the ascending channel cannot be ruled out. This view will be ruled out if the price moves above the upper side of the channel.