- Upbit has removed SNX from its list of closely monitored assets after months of scrutiny over sUSD’s instability.
- Technical indicators, including a bullish MACD crossover and rising RSI, suggest SNX may be forming a bottom.
- Despite early signs of recovery, concerns around sUSD’s peg remain a key risk to SNX’s long-term upside.
The price of Synthetix (SNX) has surged more than 13% in the last 24 hours after the prominent South Korean cryptocurrency exchange Upbit removed the token from its list of “cautionary” assets.
The cryptocurrency saw a 124% surge in trading volume from the news. According to CoinMarketCap, SNX has soared past the $200 million market cap by this time.
Upbit Lifts Warning as sUSD Peg Improves
Upbit’s decision to delist SNX from its caution list follows concerns about the peg instability of its native stablecoin, sUSD. Earlier in April, deposits for SNX were suspended after Synthetix failed to maintain sUSD’s 1:1 USD peg.
Related: SPACE ID Rose by 100% After Listing on Upbit Exchange
However, recent stabilization efforts, including a new incentive initiative called the “420 Pool,” appear to have encouraged enough positive momentum for Upbit to ease restrictions, at least for now.
While the broader issue with sUSD’s peg remains unresolved (currently trading at $0.86), at press time, SNX trades at $0.585, down 97.97% from its all-time high seen over four years ago.
Technical Analysis Shows Signs of a Bottom
The daily SNX chart on Binance suggests that the token might be trying to carve out a local bottom after months of decline. From the recent low of $0.1623 to the local high of $0.964, the price has retraced sharply and now hovers around the 0.236 Fib level.
The Fibonacci extensions suggest major resistance at $1.17 (1.618 Fib), $1.51 (2.618 Fib), and $2.06 (4.236 Fib). If bulls regain control, a move toward $1.17 could be the first major target.
Also, the RSI is currently at 36.99, turning upward from oversold territory. This could be an early indication of a bullish reversal, though it’s still below the 50 neutral line.
Related: Synthetix to Shut Down Its Layer-2 Deployments on Base, Refocus on Ethereum
Meanwhile, the MACD line (blue) is just beginning to cross above the signal line (orange), suggesting a potential bullish crossover. However, the histogram remains shallow, indicating weak momentum.
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