Synthetix Coin (SNX) Review and Price Analysis

One of the most profitable and OG DeFi protocols is about to go from inflationary to massively deflationary. On Dec 17, $SNX will officially shut off token inflation. All votes are in favor. Then, starting with the imminent deployment of perps on BuildOnBase , buy and burn will turn on and Synthetic token supply will become deflationary. This is going to be a massive shift from $SNX tokenomics currently driving selling pressure to instead resulting in persistent buying pressure. The ability to adapt token design and incentives to what is most beneficial to the protocol and for only as long at it is needed is what is so unique and powerful about crypto. Inflation was needed to date in order to incentivize stakers and build up liquidity for the Synthetix liquidity protocol. Now that there is significant liquidity (as evidenced by over $200M open interest for perps), Synthetix is so profitable and regularly driving over $1M in weekly profit to stakers, and the fact that the protocol is ready to support additional forms of liquidity collateral (ETH and USDC to start), inflation can be shutoff and adapts to current protocol needs.

After gaining the level of $3,387 on the higher time frame, the price turned that area into support and rose to the level of $4,446. At this point, if the price shows persistence above the $4,446 level, the next resistance level I’m monitoring is $7,172. Since the announcement of the change in its inflationary structure, the price has not lost its upward momentum. Considering the bullish fundamentals, I believe it would be more reasonable to attempt long positions from appropriate support levels in this pair, rather than looking for shorts.

The analyses shared here are not investment advice; however, they are considered support and resistance levels that may provide short to medium-term trading opportunities in the market. The responsibility for taking trades and managing risks lies with the user. Using stop-loss orders in shared trades is strongly recommended.

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