In recent weeks, the cryptocurrency markets have been a bloodbath characterized by a strong bearish move to the downside. Until two days ago, the Synthetix price was also facing one of its worst months, at one point dropping by more than 50 per cent of its June market open price.
However, Synthetix’s price started to reverse during the late hours of Saturday’s trading session. On Sunday, Synthetix’s price rose by 34 per cent. The trend carried on during yesterday’s trading session, which saw the crypto close the markets up 56 per cent. The surge saw Synthetix reclaim its bullish monthly status and start a new recovery journey.
Why did Synthetix price surge?
The current surge was a result of the recent partnership between Synthetix and liquidity provider Curve Finance. According to the terms of the partnership, the two platforms would create Curve pools for Synthetic Ether (sETH)/Ether(ETH, Synthetic Bitcoin (sBTC)/Bitcoin (BTC) and Synthetic U.S. dollar (sUSD)/3CRV. This would allow investors to easily convert synths such as sETH to ETH at a cheaper price.
The partnership boosted the SNX trading volume, which translated in the markets and saw the crypto rise by over 100 per cent in 48 hours.
Synthetix Price Prediction
Following the past two days’ aggressive bullish moves that resulted in prices rising by 117 per cent, today’s trading session is down by 2 per cent. However, the drop, which started during the late hours of yesterday’s trading session, may be a price correction.
Therefore, my Synthetix price prediction is that prices will recover and continue with the past two days’ aggressive bullish move. Although the bullish move was triggered by the partnership between Synthetix and Curve Finance, today’s bearish move does not change the past two days’ upward trend. Furthermore, looking at the intraday data, the crypto has also risen by 8 per cent from today’s lows, indicating a possibility that the prices will likely close above the opening price.
However, should the prices trade below the $2.50 price level, then my bullish analysis will be invalidated. It will also mean a continuation of a possible long-term bear trend.