- Synthetix price dipped by nearly 6.5% during the intra-day trading hours before recovering to trade at $2.7.
- Over the past 24 hours, the altcoin noted heavy liquidation from investors as Open Interest declined by nearly 20%.
- Most of the bearishness is likely from retail holders, as large wallet holders have added over 5 million SNX in the past ten days.
Synthetix price had an impressive run these past two weeks as the altcoin increased to hit a three-month high. However, in the last three days, SNX has posted red candlesticks, with July 26 almost observing a significant decline. This fear of losses was reflected in the investor's behavior.
Synthetix price almost declined
Synthetix price, trading at $2.7, fell by more than 6.5% during the intra-day trading hours. The price drop was the result of the market cooling down, as earlier this week, the rally led to SNX being overbought. The Relative Strength Index (RSI) broke below the 70.0 threshold after being overbought, signaling the correction that ensued.
But today's volatility had a deeper impact on the cryptocurrency as it led to investors fearing losses and closing positions in the Futures market. Synthetix Open Interest fell by over 19%, removing more than $7.4 million from the market.
Synthetix Open Interest
This was the result of a few reasons. One is that investors manually liquidated their positions over the past 24 hours to offset any potential losses that might have occurred due to the price fall. Secondly, following the price drop, traders that were holding onto their short positions were liquidated in profits. And lastly, long positions noted forced liquidations due to the sudden decline. In line with the same, in the past day, SNX noted long liquidations worth more than $270,000.
Synthetix liquidations
Synthetix price thus has the potential to rally further and test the resistance levels at $2.8 and $2.9 before receding. As there is still some imbalance due to the sudden rally, SNX is likely to fill this by falling to test the support line at $2.4.
This level has not only been tested previously but also marks the collusion between the 50-day and 200-day Exponential Moving Averages (EMAs) making it a key support level.
SNX/USDT 1-day chart
Large wallet holders to prevent a crash
Interestingly, the price decline mostly impacted retail holders, who also potentially were the ones to close their positions today. Since July 15, large wallet holders - addresses holding between 100,000 SNX to 1 million SNX have observed an increase in their holdings.
This accumulation continued even as Synthetix price posted red candlesticks since July 22, with their holdings rising by 5 million SNX ($13.5 million) in the last ten days.
Synthetix large wallet holders holding
Thus their bullishness will likely offset any sudden decline in Synthetix price, as was observed today, and help in recovering any losses going forward.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.