SNX Price Rises 7% Amid Synthetix Founder’s Call for sUSD Participation
The price of Synthetix's SNX increased by 7% in the last 24 hours, reaching $0.6851, with trading volume up nearly 40%. However, SNX remains down approximately 21% over the past month due to uncertainty about its stablecoin, sUSD.
Technical Analysis
- SNX has formed a falling wedge pattern; breaking above the upper trendline could indicate a bullish reversal with a target around $1.82.
- The MACD shows bearish momentum, but lighter red histogram bars suggest decreasing selling pressure.
- A MACD bullish crossover could signal further upward movement.
- SNX tested the 0.236 Fibonacci retracement level at $0.67; breaking this level may lead to resistance at $0.73 and $0.80.
- The depeg of sUSD poses a risk for SNX's price stability.
sUSD Depeg Issues
sUSD is currently trading at $0.7684, indicating a 2.2% decrease and significantly below its $1 peg. The recent protocol overhaul (SIP 420) destabilized sUSD by removing a key arbitrage mechanism. This has led to thin liquidity and heightened volatility.
Synthetix founder Kain Warwick urged SNX stakers to engage in a new staking mechanism to stabilize sUSD. The sUSD 420 Pool incentivizes locking sUSD for a year in exchange for 5 million SNX tokens over 12 months. Warwick indicated he may enforce stricter measures if participation is insufficient once the user interface is operational.