Synthetix (SNX), a decentralized cryptocurrency derivatives platform, experienced a significant price drop of over 20% coinciding with the launch of spot BTC ETFs on January 11. Despite market pressures, the launch of the first perpetual protocol on Coinbase’s Ethereum Layer-2 Blockchain Base is a pivotal development for Synthetix’s future.
The introduction of Perpetuals V3 on Base Blockchain marks a milestone for the decentralized crypto derivatives market, leveraging Coinbase’s reach to attract a wide user base. This integration is expected to increase trading volume for Synthetix perpetuals across the broader Ethereum ecosystem.
Perpetuals V3, succeeding its predecessor V2, launched in January 2023 and has since attracted tens of thousands of new investors with over $43 billion in trading volume. Synthetix is preparing to expand its offerings on Base with the upcoming launch of a new perpetual exchange named Infinex, aligning with founder Kain Warwick’s vision to enhance competitive advantage in decentralized crypto trading.
Synthetix’s price, after a significant 35% drop from its December 12 peak of $4.95, could be at a turning point. Positive developments with Perpetuals V3 have initiated a bullish momentum, indicated by the RSI, which could lead to a potential breakout above the $3.00 resistance level.
If the $3.00 resistance is successfully breached, it could lead to a test of the 100-day Simple Moving Average (SMA) at $3.28. Overcoming these levels could signal a change in the technical downtrend. In an optimistic scenario, SNX price could enter the supply zone between $3.87 and $4.53. Conversely, continued bearish pressure could lead to a decline below the 200-day SMA to $2.77 or even a 40% drop from current levels to a support base of $1.90 in a severe downturn.