In the last days SNX have seen its first major pullback since July, after the impressive 7 green weekly candles.
SNX/USD weekly chart
The price went as far down as $1.08, but now it recovered quite impressively to $1.24. A hell of a daytrade opportunity for those who like that.
SNX/USD 1h chart
SNX price is currently sitting just below the 20MA in the 4h chart, which was acting as very reliable resistance from November 12th until the 29th, when it breached the line to enter in a mini bear market.
SNX/USD 4h chart
The next 24h of SNX price action will be decisive: we might continue on the downward trend, or recover the 20MA support line on the 4h. The giant lower wick in the fresh red weekly candle indicates that the selling pressure might be exhausting.
The downward move was expected, in a way, given the restless rise of SNX value in the last two months, plus the last green weekly candle with an upper wick larger than its body (a typical sign of price peak). We can say it was a healthy pullback. Patient traders who were looking to buy SNX but were waiting for a discount now had their chance. Others might have done some panic selling, which the last 4h proved to be a bad idea.
Another important aspect of this sell-off was to test the Synthetix system as a whole. The ratio of collateralization has dipped a slightly below 700%, but the ratio of SNX locked has not moved much and continues at an impressive 83%. The stablecoin sUSD also continues stable at 0.981 USD. More information can be found in the Synthetix Dashboard.
Collateralization and Locked SNX ratio, and sUSD price
One interesting fact found in the Dashboard is that people seem to be mostly bearish about XRP, which has the highest rate of shorting among all inverse Synths (if you don't know about Synths, you can read my post here or this other post). There is $4,227 iXRP (short positions), but only $262 sXRP (long). In the current bear market the possibility of buying short synthetic assets is a very promising feature of Synthetix.
Long and short positions in the Synthetix Network
The distribution of Synths, however, continues massively concentrated in sUSD and sETH (synthetic ETH).
Distribution of Synths in the Synthetix Network
Even with today's massive pullback, Synthetix continues strong in the second position on Defipulse, a list of the biggest DeFi dapps.
Top 3 projects on DeFi Pulse
Cover photo from here.
