SNX - A Brief Look at Synthetix - In Depth DeFi - 2
I'm going to go through all the major DeFi Crypto offerings over the next little while. Calling it "In Depth Defi". Instead of "In DepthFi". Still unsure on that one. If you like it, enjoy, and feel free to leave a like. If you dislike it, also leave a like, just aggressively click the button. I'll be able to tell the difference.
Synthetix started as a stablecoin project called Havven, founded by Kain Warwick. Who either had really cool parents or made up his name. More recently they've pivoted into the world DeFi, just like literally everyone on the planet..
Basically, their system uses two types of tokens: the main Synthetix Network Token ( SNX ) and synthetic assets, or Synths, of which there are many different ones. ETH is locked up to create DAI, similar to MakerDao but here SNX acts as a locked collateral to create SUSD (SynthetixUSD), which then acts as that sweet sweet debt. and the wheels of capitalism keep turning...
The Chart
We see a couple interesting trend on the 4H chart: first we're in a big ole downward wedge , with the bottom flattening out against the historic key support. That's the big purple rectangle if you didn't pick up on that.
We're currently sitting in a pretty tight downward channel , which we can see is historically how SNX tends to move before having a firm breakout upward. Not a lot of partial moves on this chart.
EMA all major EMA's are being used as resistance right now. A clear bearish indicator.
MACD Shrinking bear divergence.
Stoch Decent room for growth, right in the middle of the channel, but looking like it's headed towards a bear cross.
OVERALL
We're likely to see this downward channel continue until it can punch into the historic support zone , ole' mr. purple rectangle . Watch it when it gets here as this will be the likely bounce or break point.
Safest entry is to wait for it to break the downward channel in the upwardly direction. When SNX reverses, it tends to complete the reversal as i mentioned earlier. If you're the knife catching type, make sure to set an intelligent SL. If that support breaks it could dip lower trying to trigging SL's.
TP's are marked on the chart. Over the 2nd one we're talking fairly long term. the first two you'll probably get within the next couple weeks.
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"I made my money the old-fashioned way. I was very nice to a wealthy relative right before he died." - Malcolm Forbes
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