- Synthetix price has risen by almost 20% in the past week as the social activity of the altcoin exploded.
- The increase in interest was met with on-chain bullishness as $10 million worth of SNX has been accumulated by whales.
- However, losses recently hit a six-month high as investors likely panic sold their tokens to offset losses.
Synthetix price has had a pretty good run these past seven days, leading the crypto market recovery. While the altcoin found interest on the social front, the investors did not disappoint when it came to on-chain behavior. But despite the cryptocurrency noting bullish behavior, many investors still faced losses due to their lack of patience.
Synthetix price rally did not fail to impress
Synthetix price at the time of writing was hovering around $2.29 after noting a near 20% rally in the span of a week. The series of green candlestick was a sigh of relief for investors who had been noting declines since mid-July until September 1.
SNX, at the time of writing, could be seen near the resistance level marked at $2.40, breaching which could help the altcoin recover half of the recent losses. The Relative Strength Index (RSI) is also treading above the neutral line in the bullish zone, supporting the optimistic outlook.
Nevertheless, if the altcoin fails to flip the resistance into a support floor, it is most likely going to pull back to $2.00. Should it fall through this psychological level, too, it would have another chance to bounce back from $1.90 before declining to June lows of $1.73.
SNX/USD 1-day chart
However, looking at the investors’ behavior, the latter situation seems rather unlikely.
SNX holders engage in bullish behavior
The Synthetix price rally was not a simple run-up for the value of the altcoin; it also managed to trigger bullish behavior from investors. Looking at the supply distribution among addresses, it can be observed that the addresses holding between 1 million and 10 million SNX scooped up large amounts of tokens this past week.
About 5 million SNX were added to their wallets, bringing their holdings to 55 million SNX. Part of this supply was seemingly dumped by the cohort with a balance of 100,000 SNX to 1 million SNX. These holders noted a decline of nearly 4 million SNX in the same time period.
Synthetix supply distribution
Social mentions show that the on-chain bullishness was triggered by the rising discourse related to the altcoin. This led to Synthetix noting an increase in traction, which was visible in the increase in the creation of new addresses. The network growth hit a two-month high as the rate of new address formation increased by 27%.
Synthetix network growth
Interestingly, this rally also triggered some investors to lock in whatever profits they may have made. This would ensure that even if the rally is corrected in the future, they would have already offset their losses. Consequently, many investors chose to sell for minimal losses, which were still not as low as one would expect.
On September 4, the realized losses hit a six-month high, amounting to $18 million. The losses are calculated as the price at which the coin changed address vs. the price at which it last moved, considering it to be the acquisition price.
Synthetix network realized losses
Thus, investors’ lack of patience is leading them to face losses even after SNX is managing to top the charts in terms of rises. Going forward, investors are expected to watch the altcoin for potential correction that may arise from similar profit-taking.
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Source: FX STREET