Synthetix [SNX] managed to achieve a solid increase of more than 10% on 17 October. This performance meant that it outperformed many of the top cryptocurrencies over the same period. But can SNX sustain the trend?

Here’s AMBCrypto’s Price Prediction for Synthetix [SNX] 2022-2023

SNX’s performance may not be just a fluke, especially when we consider that most of its top counterparts have won in the lower single digits. A deeper dive into Synthetix revealed that the advantage may have been related to the demand for st0ablecoin.

Synthetix’s stablecoin sUSD has experienced a volume explosion in the past 24 hours, by more than 150%. The 24-hour trading volume grew by just over half a million, while the market cap increased by more than $2 million. This confirmed strong demand for the stablecoin, which in turn may have caused higher demand for SNX.

Fuel for the bulls

SNX’s latest advantage can be viewed as a result of the bullish performance it delivered last week. The price of $2.34 on Oct. 17 represented a 25% increase from its recent local low, which nearly retested the June lows.

Source: TradingView

The recent SNX low also meant it was up 137% from its late July high. Some friction was also expected as it hovered around the Relative Strength Index (RSI) level of 50. However, there could be some more upside as the latest pivot marks the start of a bullish relief rally.

A surge in active trades accompanied SNX’s current upside potential. This confirmed the return of bullish volumes, especially in the past 24 hours.

Source: Santiment

The observation of active addresses reflected current short-term demand characteristics. A look at SNX flows can help shed some light on whether this was the start of a bullish relief.

SNX’s supply dynamics also revealed a decline in the amount of cryptocurrency on exchanges. In addition, off-exchange supply grew by a significant margin over the past seven days.

Source: Santiment

In addition, the delivery statistics confirmed that a significant amount of SNX has moved off-exchanges and into private wallets. While these observations pointed to a higher probability of more bullish times ahead, they were not necessarily a guarantee of the stated outcome.

Higher demand for sUSD could be an indication that traders were preparing for more trading in the future and this has boosted demand for stablecoin. Other forces driving demand for SNX may also come into play. For example, the demand for sports betting could also provide more upside for the cryptocurrency during the upcoming football world cup.

Overtime Markets, a sports betting platform built by Thales, was strategically positioned to fuel this demand from the sports betting industry. This is because Thales is native to the Synthetix network.



This post Latest SNX hype may have stable coin connection waiting to be discovered

was published first on https://ambcrypto.com/the-latest-snx-hype-may-have-a-stablecoin-connection-waiting-to-be-explored/

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