SNX price likely to recover as Synthetix launches first perpetuals protocol on Base blockchain

• Synthetix price has fallen over 20% since spot BTC ETFs trading started on January 11.
• SNX is likely to scale a recovery with the $3.00 psychological level holding as a support base.
• The bullish thesis will be invalidated if the price loses the 200-day SMA support at $2.77.
• The network has launched the first perpetuals protocol on Base blockchain.

Synthetix (SNX) price action since around mid-December has culminated in a descending parallel channel, committing to more losses for as long as it remained within the confines of this governing chart pattern. Despite multiple recovery attempts. The bears had their way, but now SNX bulls have a bullish fundamental to steer their course.

Also Read: Synthetix price shows continued strength as SNX supply on exchanges drops

Synthetix deploys first perpetuals protocol on Base blockchain

Decentralized cryptocurrency derivatives marketplace Synthetix has launched its first perpetuals protocol on Coinbase’s Ethereum Layer 2 (L2) blockchain, Base blockchain. Although it is the first on Base, it is the third version (V3) of its kind.

Based on the announcement, Base chain is the gateway for the millions of Coinbase users. With the launch expected to be an enabler enhanced trading volume for Synthetix perpetuals across the Ethereum ecosystem.”

Notably, the V3’s forerunner, perpetuals V2, debuted in January 2023 and boasts over $43 billion in trading volume since, with tens of thousands of new traders or users coming in.

The network has also committed to launching more Synthetix V3 products on Base in the future, with a new perpetual futures exchange dubbed Infinex already in the works. Synthetix Founder Kain Warwick has already hinted at the intention to help decentralized crypto trading compete favorably with centralized avenues, saying, "The problem is, we're still using centralized infrastructure for most crypto transactions. Most crypto activity is not leveraging the decentralized technology we’ve built."

Perpetuals V3 is likely to deliver the same result, if not more,  with the new iteration expected to simplify the launching of new derivatives products on Synthetix for developers on the Base chain. Exchanges powered by Synthetix, including Kwenta, Polynomial, and dHEDGE, will also enjoy similar privileges.

Synthetix price may be at a turning point

After a 35% drop from the peak price of $4.95 recorded on December 12, Synthetix price may have found inflection, instigated by the bullish news about perpetuals V3. The Relative Strength Index (RSI) has inched north, suggesting the bulls are reacting to the news with buy calls.

If they increase their buying pressure, the Synthetix price could push north, potentially overcoming the resistance due to the midline of the channel around $3.00, before testing the 100-day Simple Moving Average (SMA) at $3.28.

Further north, the altcoin’s price could confront the 50-day SMA at $3.76, above which a possible break above the bearish technical formation can be expected. In a highly bullish case, SNX price could venture into the supply zone, spanning from $3.87 to $4.53.

A break and close above its midline (mean threshold) at $4.21 would confirm the uptrend, with Synthetix price likely to reclaim the range high at $4.95, nearly 60% above current levels.

SNX/USDT 1-day chart

On the other hand, if the bears fasten their grip on SNX, Synthetix price could extend the fall, slipping past the 200-day SMA at $2.77 before falling out below the support of the lower boundary of the channel. In the dire case, the altcoin could dwindle to the $2.31 support, or worse, roll over to the $1.90 support floor. This would indicate a 40% fall below current levels.