Synthetix’s native token SNX has posted one of its strongest rallies of the year, climbing over 80% today and 100% in the past week, reaching $2.40 at the time of writing. The token’s recent price action follows renewed interest in decentralized derivatives platforms and anticipation surrounding the upcoming launch of Synthetix’s new perpetual decentralized exchange (Perp DEX) on Ethereum.
The protocol’s team announced that the new Perp DEX will support gasless trading and multi-collateral functionality. In addition, a $1 million trading competition is set to begin on October 20, aiming to draw further attention from professional and retail traders. These developments have led to a significant rise in SNX trading volume, which increased by more than 800% in recent days. Daily transaction volumes now exceed $600 million, reflecting the broader market’s response to the upcoming release.
The token’s price rebound also comes in the context of a wider recovery in the crypto market following last week’s selloff. SNX was among the first tokens to fully retrace its post-crash losses and push to new local highs. The combination of ecosystem developments and improved market sentiment has contributed to the latest breakout.
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Overbought Indicators and Key Levels
As the price accelerated, technical indicators began to show signs of overheating. The Relative Strength Index (RSI), a common momentum tool, has entered overbought territory on multiple timeframes. The 14-period RSI is currently at 80, while the shorter 7-period RSI has reached 85. These levels are above the typical 70 threshold, which may signal a high degree of short-term buying pressure.
Another area to monitor is the $2.09 level, which aligns with a key Fibonacci resistance level from previous retracement zones. SNX recently broke above this point, and the market response to any retest may help determine whether the move sustains. If the price holds above this level, some traders may interpret it as a sign of continued strength. On the other hand, a failure to hold this zone could lead to a pullback.
The price remains also significantly above the upper Bollinger Band, which confirms the breakout, but can also be interpreted as oversold signal:
The current setup shows strong upward momentum, but also increased likelihood of price consolidation or local corrections. In such cases, short-term reversals are not uncommon, especially when driven by speculation ahead of product launches.
