Synthetix (SNX) Hits Record High amid DeFi Correction; Here’s Why?

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Synthetix native token SNX emerged victorious on the day the competing decentralized financial tokens got lower.

The SNX to dollar exchange rate hit a new record high of $ 8.68 on Wednesday as a flurry of uplifting fundamentals caused traders to raise their bids on the pair. This included the introduction of a new stakeout platform.

Say hello to the brand new dApp for use on Synthetix! https://t.co/o4ks9nt8lb

The new user interface has been redesigned from the ground up to provide the best staking out experience for SNX owners. 1 / https: //t.co/wcPTmDv8nW

– Synthetix ⚔️ (@synthetix_io) December 22, 2020

A bullish expansion

Sythentix ‘proprietary Dapp went online on Tuesday, paving the way for people to put their SNX stocks in for attractive returns. Traders usually increase their short-term bullish bias on DeFi projects trying to expand their service portfolio. Previously, YFI, the governance mark of the decentralized aggregator platform Yearn.Finance, had also doubled after the protocol ventured into lending and decentralized exchange services.

The SNX / USD exchange rate was further boosted by Coinbase Pro. The US-based crypto exchange listed the token on its trading platform last week after months of speculation. Overall, the cost of buying an SNX token has almost doubled in the past eleven days given the general euphoria of the cryptocurrency market.

Synthetix continues its upward trend despite a downward correction across the DeFi area. Source: SNXUSD on TradingView.com Synthetix continues its uptrend despite downward correction across the DeFi area. Source: SNXUSD on TradingView.com

In comparison, other DeFi tokens showed underperformance. SNX rose about 19 percent in the last 24 hours, while YFI, UNI, and AAVE were in the 3 to 7 percent range.

“Possibly related to SNX, SNX volumes have skyrocketed in the last few days. Binance, OKEx and even decentralized exchanges like SushiSwap have seen a sharp increase in volumes for the coin,” noted Nick Chong in the Alpha Alarm newsletter. written by analysts Joseph Young and Cole Peterson.

“SNX is often viewed as a DeFi coin that has ‘fallen asleep’ and therefore may recover if the market corrects itself,” he added.

What’s next for SNX?

The SNX / USD exchange rate is driving short-term bullish fundamentals. However, a rebound in other DeFi assets could lead speculators to lose their profitable SNX positions in search of cheap token opportunities.

The narration fits the technical description of the four-hour diagram of the Sythentix token. SNX / USD forms a rising widening wedge after a recent bullish move. Technically, this should reverse the uptrend if price falls below the support of the structure in the upcoming sessions. In 80 percent of the cases, the exit is bearish.

Synthetix Trade Setup according to the ascending wedge setup. Source: SNXUSD on TradingView.com Synthetix trading setup according to the ascending broadening wedge setup. Source: SNXUSD on TradingView.com

The downside target after the wedge breakout is near $ 4.12.