Here’s why the SNX crypto price soared 130% today

The SNX crypto price went vertical today, Oct. 13, reaching its highest point since December.

Synthetix (SNX) rose to a high of $2.57, up 370% from its lowest point this year. This surge happened as daily volume spiked 2,035% to $1.1 billion. Its market capitalization jumped to over $777 million.

Synthetix has been in a strong rally as more investors moved to its mainnet trading competition. Data on its website show that there are 180 traders participating, with total deposits hitting over $6.2 million.

Synthetix is aiming to launch its perpetual futures trading platform in the coming months. That launch will help it compete with other popular companies in the industry like Aster, Hyperliquid, Avantis, and Lighter. Perpetual futures exchanges handled over $1 trillion in volume in October.

The SNX price also jumped as more users continued to stake SNX and the sUSD token. Data show that the amount of staked SNX has risen to 171.7 million, up from 160 million in June. Similarly, sUSD staking has climbed to 12.54 million, up from 10.5 million on Oct. 1.

Meanwhile, on-chain data show that whales have been accumulating Synthetix as the supply on exchanges fell to a year-to-date low. The supply plunged to 73.41 million, down from 88 million in September.

Whales now hold 1.24 million SNX, up sharply from this month’s low of 569,000 on Oct. 1.

SNX crypto price technical analysis 

The weekly time frame chart shows that the SNX price bottomed at $0.484 in June. It then started rebounding in September as perpetual DEX platforms like Avantis, Aster, and Orderly jumped.

The coin has risen to the 38.2% Fibonacci retracement level at $2.31 and moved above the 50-week and 100-week moving averages. Also, the Relative Strength Index and the Stochastic Oscillator have continued rising.

Therefore, the most likely scenario is that the SNX price retreats now that it has become highly overbought. If this happens, the next point to watch will be the 23.6% Fibonacci retracement level at $1.60, down about 30% from the current level.