Although down by 4% at press time, Synthetix (SNX) now draws near $3 after scoring above 15% in a week despite the looming recession in the market. The coin is among the gaining cryptocurrencies in the bearish market.
However, whether the coin completes its rally to $3 or above depends on the corresponding volatility and investor sentiment in the crypto market. As it stands, the market is battling an unusual rise in volatility, which has increased to 25%, according to Alternative, exerting selling pressure on most coins.
Sythetix Calling The Bulls With Promising Ecosystem Improvements
At press time, SNX’s price has declined and is trading at $2.85. However, its 15.% weekly gain and 4.4% 14-day gain might boost the confidence of investors who purchased their holdings towards the end of 2022, when it traded below $2.
Some evidence suggests that Synthetix has witnessed many ecosystem improvements that might have supported SNX to hold gains amid bearish sentiments. For instance, SNX price may be performing in response to the 22 new token additions on the Synthetix perpetual futures market, which the Synthex protocol rollout earlier this year.
Leveraging the low fees, improved scalability, and lightning-fast transaction executions, users can now access more diverse tokens. It would also attract a more user base for SNX and could be behind its recent price performance.
Meanwhile, on February 23, Synthetix deployed its version 3 (Synthetix V3) on Ethereum and Optimism mainnet. The Synthetix team considers this a milestone for the network as it will improve its functionality and enhance cross-chain stablecoin transfers. The primary function of the Sythetix V3 is generating a collateralized debt position as a dollar-pegged stablecoin used in integrated markets.
Also, Synthetix launched the Schedar Release in February to burn fees and reduce debt for stakers. These developments probably helped scale SNX prices even when the market turned bearish.
SNX Price Outlook, Will the token Sustain Gains And Reach $3?
Sythetix (SNX) price has a good outlook today, with 83% of the crypto community feeling good about the coin, per CoinMarketCap data. However, SNX is highly volatile, at the moment, with trading volume down by 11.78% and price down by 4.4% over the past 24 hours.
SNX witnessed a steady uptrend from the start of 2023. As of January 1, it traded at $1.51 and increased gradually to $2.11 on January 14. The uptrend continued, with a few downs here and there, until it climbed to $2.93 on February 7 before meeting a brief downturn.
The February crypto market-wide downturn pushed SNX’s price from $2.93 to $2.35 on February 12. The token price picked up for three days and then met several days of price fluctuation between February 14 and 25.
SNX price rallied from February 24-28, except on the 26 when it declined by 6.5%. It reached $3.03 on March 1, closing at $3.01, and even traded at $3.01 earlier today before hitting another correction.
Following the token’s price actions over the past few days, chances that the bulls will return and push the price upwards again, even above $3, are high.