Pepecoin ($PEPE) markets have been fuelled with excitement as the Synthetix ($SNX) community weighs integrating the internet’s latest sensation, Pepecoin, into its DeFi offering.
Amid the palpable sense of anticipation hovering over the crypto industry, the effect on SNX’s price is already visible, soaring around 10% overnight.
Synthetix, a pioneer among DeFi projects, operates on Ethereum and Optimism, and allows users to create liquidity pools for tokenized versions of commodities, such as gold and oil.
But What is SNX and How Does it Work?
The native token, SNX, not only serves as the platform’s currency but also as a governance tool.
Its holders can vote on various proposals that can determine the platform’s course of action, making it an instrumental component in shaping the ecosystem’s future.
Recent developments have transformed Synthetix into an infrastructure provider, powering trading platforms like Kwenta and Lyra.
SNX stakers are rewarded with fees for providing liquidity to these platforms, promoting a sense of symbiosis in the community.
The potential integration of PEPE, a meme coin that has taken the crypto market by storm, has drawn the attention of both the Synthetix community and the broader crypto landscape.
Synthetix Improvement Proposals (SIP) 2014 and 2015 have ignited the interest, proposing to open eight new markets for synthetic versions of notable cryptocurrencies, with the crown jewel being PEPE.
This mega-popular meme coin has already proven its potency in the crypto market. – adding PEPE to the Synthetix platform could unlock fresh possibilities and generate new streams of liquidity and trading activity.
The proposal has also hinted at the possibility of listing PEPE on Kwenta, which could extend the meme coin’s reach and influence.
Top projects on #Optimism with highest active accounts last 7 days
$STG @StargateFinance
@Clique2046
$VELO @VelodromeFi@Orbiter_Finance $SNX @synthetix_io@NestedFi@matchaxyz@LayerZero_Labs $UNI @Uniswap #Layer2 $ETH $OP #L2 pic.twitter.com/oznlOu52KK— Optimism Hub (✨_✨) (@OptimismHub) May 10, 2023
This bold move from Synthetix is a clear sign of the platform’s intent to adapt to the market’s evolution and embrace the meme coin mania, adding a layer of excitement to its already rich DeFi offerings.
If SIP 2014 and 2015 pass, the integration of PEPE, along with other cryptocurrencies like SUI and BLUR, could potentially boost SNX’s performance and solidify its standing in the DeFi space.
As the voting concludes in two days, the crypto world holds its breath, speculating on the impact of these proposals.
All eyes are now fixed on Synthetix, waiting to see how the integration of PEPE will influence the price of SNX.
Will PEPE madness be the catalyst that lifts SNX out of its 91% decline from its all-time high set in February 2021? Read on to find out.
Synthetix (SNX) Price Analysis
With Synthetix (SNX) trading high following an overnight +20% uptick, price is currently sat in a brief consolidation move at $2.83 (a 24 hour change of -1.08%).
The resounding pump – fuelled by the PEPE integration news – saved SNX from the capitulative depths of despair after months of cascading downside movements.
Now demonstrating strong technical structure as a bullish cup and handle appears on the chart, last night’s push up saw SNX smash localised resistance from moving averages.
This leaves SNX poised with secure footing above the converged MA20 and MA200 – potentially positioning SNX to hammer to the upside.
With the RSI slightly overheated on the sudden movement at 52.6 – this could imply a need for 24 hours of consolidation above the moving average support level.
The MACD has inevitably shifted bullish following the reclamation of the moving averages as support, now sat with a bullish signal at 0.037.
Overall, SNX has shown great strength over the past 48 hours – with all indicators and technical structure suggesting more upside movement is on the horizon.
Following a brief period of consolidation, SNX has an upside target at $3.00 (a potential +25.47% move).
Whereas downside risk could see a retracement of last night’s pump back down to $2.00 (a potential -16.3% movement).
This leaves SNX with a Risk: Reward ratio of 1.56 – representing a good entry with decent upside potential.
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This article was written for Business 2 Community by Sam Cooling.
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