Key Takeaways
What’s driving Synthetix’s latest 25% surge?
A $57 million inflow across on-chain and perpetual markets, plus a $1M trading competition, boosted liquidity and investor confidence.
Can SNX reach $2 soon?
A breakout above $1.9 resistance could push SNX toward $2.19, with Parabolic SAR signaling further upside if bullish momentum continues.
Synthetix [SNX] has surged by 25% in the market, making it one of the top gainers in the crypto market over the past day.
The sudden interest and spike in trading activity pushed its trading volume to $370 million, following the launch of a trading competition that sets aside $1 million for 100 selected traders.
AMBCrypto has since analyzed whether this renewed momentum could push the asset to reach new heights in the market.
Liquidity surge sparks renewed growth
Liquidity surge has been one of the major factors driving SNX’s growth across two key market segments—the on-chain and derivative phases.
On-chain liquidity rose by an additional $20 million, calculated from the change in Total Value Locked (TVL), which now stands at $194 million.
Source: DeFiLlama
Some investors hold back
The liquidity surge in the past day did not come with full market alignment. In fact, spot market investors and some perpetual traders remain cautious about an upward rally.
In the past 48 hours, these groups collectively sold $8.53 million worth of SNX into the market, marking the highest sell-off recorded within this timeframe.
Source: CoinGlass
Likewise, the perpetual market for SNX showed that the Open Interest Weighted Funding Rate was negative, with a reading of -0.0148.
Thus, the majority of contracts in the market are still largely positioned for a downside move.
Importantly, this does not disregard the rising surge in Open Interest. Liquidations in the market against short positions, valued at $847,000, suggest that the bulls are still gaining momentum.
SNX’s potential move to $2 depends on two major factors. The first is market momentum, reflected in the recent $57 million inflow over the past 24 hours. The second factor is the resistance level at $1.9 on the chart.
Breaking above this level would likely push SNX toward its next target at $2.19, where a supply zone is visible.
Surpassing this next resistance at $2.19 could open the way for a rally to $2.57 — the highest level the asset has traded this year.
Source: TradingView
Currently, the Parabolic SAR (Stop and Reverse) indicator—shown as dots on the chart—supports this outlook. With the Parabolic SAR dots now below the price, it suggests that the asset is likely to push higher.
