Key Takeaways
Why has Synthetix rallied so quickly?
Enthusiasm around a $1 million top prize trading competition ahead of its perpetuals DEX launch was spurring demand for SNX.
Should traders expect the bullish move to continue?
The $2.27 and $3.68 zones cap upside pressure. Profit-taking above $2 makes sense; a dip to $1.4 isn’t assured.
Synthetix [SNX] witnessed a 130% price pump in the 24 hours before the time of writing. Its daily trading volume had climbed by 1,632%, reaching $999.57 million at the time of writing.
The rally followed a broader market wipeout, yet SNX showed strong bullish conviction across spot and derivatives markets.
The Open Interest was up 316% in 24 hours at the time of writing, once again indicating strong short-term bullish sentiment. Traders have reason to be enthusiastic about Synthetix.
Meanwhile, momentum from Synthetix’s latest announcement added fuel to the rally.
$1 million competition draws trader attention
Synthetix confirmed on X that its Mainnet Trading Competition will begin on the 20th of October on Ethereum [ETH], offering a $1 million prize pool.
The top sUSD and sUSDe pre-depositors, along with 5 lottery winners, will earn a whitelist spot. This might be driving the recent SNX demand, as the token is required to be staked to mint the sUSD.
The 25% retracement following the trading competition announcement on the 2nd of October was a healthy reset that allowed the price to break out past key levels.
The volatility of the 10th of October was intense for Synthetix, too, but it has been quickly shrugged off.
How high can the Synthetix rally go?
Source: SNX/USDT on TradingView
The weekly chart showed a bullish structure. The move beyond $0.783 shifted the structure, and the break of $0.965 reinforced the strength of the buyers.
These were key weekly resistances from earlier in 2025.
With the quick rally, we saw the decentralized protocol token reach the next weekly resistance at $2.27.
Moreover, the 50-period Moving Average acted as support, and the $2 psychological level remains key.
Overbought yet dominant
Source: SNX/USDT on TradingView
On the 4-hour chart, the price has left behind a large fair value gap (white) from $1.31 to $1.63. The breaker block at $1.4 also highlighted the level as a key support that would offer a good buying opportunity in case of a retracement.
The OBV has risen swiftly, a result of the high trading volume and bullish sessions. The RSI was at 84, well into the overbought territory.
The $2.27 level was a key HTF resistance. Bitcoin [BTC] was unable to climb past $117k at the time of writing as well.
These two factors meant that SNX traders could look to take profits around the $2-$2.2 mark and wait for the next move to develop.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
