The latest SNX hype may have a stablecoin connection waiting to be explored

ambcrypto.com:

Synthetix [SNX] managed to pull off a solid uptick by more than 10% as of 17 October. This performance meant that it had outperformed many of the top cryptocurrencies during the same period. But can SNX maintain the trend?

Here’s AMBCrypto’s price prediction for Synthetix [SNX] 2022-2023

SNX’s performance may not just be a fluke especially if we consider that most of its top counterparts gained in the lower single digits. A deeper dive into Synthetix revealed that the upside may have been associated to its st0ablecoin demand.

Synthetix’s stablecoin sUSD experienced a volume explosion within the last 24 hours, by more than 150%. Its 24-hour trading volume grew by slightly over half a million while its market cap increased by over $2 million. This confirmed strong demand for the stablecoin which may have in turn triggered higher demand for SNX.

SNX’s latest upside can be considered as an outcome of the bullish performance that it delivered last week. Its $2.34 price of 17 October represented a 25% upside from its recent local low which almost retested June lows.

Source: TradingView

The recent SNX low also meant it had a 137% drawdown from its end-of-July top. Some friction was also expected now that stood around the Relative Strength Index (RSI) level of 50. However, some more upside might still play out if the latest pivot marks the start of a bullish relief rally.

A sharp increase in active transactions accompanied SNX’s current upside. This confirmed the return of bullish volumes especially in the last 24 hours.

Source: Santiment

The active addresses observation reflected the current short-term demand characteristics. A look at SNX flows may help provide more clarity with regards to whether this was the start of a bullish