- Synthetix breaks a multi-year descending market cap resistance, indicating renewed long-term momentum.
- Despite a 19% daily drop, SNX retains strong multi-month performance supported by ecosystem catalysts.
- Long/short data suggest bullish conviction from major traders as SNX approaches key $1.60 support.
Synthetix (SNX) is drawing attention after breaking a five-year market cap resistance while facing short-term price weakness. The asset’s recent decline reflects intensified volatility, yet broader structural data signals a possible long-term trend shift supported by upcoming ecosystem developments.
Long-Term Breakout Shifts Structural Outlook
Synthetix has entered a pivotal phase after its market capitalization broke a nearly five-year descending resistance trendline, a structural event pointing to a potential macro shift. This development was noted by market analyst Kaleo (@CryptoKaleo), who noted that the SNX market cap has finally escaped its long-term compression zone, adding that the launch of the Ethereum Mainnet perps DEX and a trading competition could accelerate momentum.
Since early 2021, SNX’s market cap faced repeated rejections from the same diagonal resistance, with attempts in mid-2022, 2023, and early 2024 failing to reverse the downtrend. The confirmed breakout above this level now signals the end of that extended bearish cycle, suggesting that market structure is rotating toward expansion.
The context of this breakout coincides with renewed protocol growth. Kaleo’s observation reflects a sentiment shift where long-term compression phases often precede cyclical expansions. As trading volume begins to rise and ecosystem developments gain traction, SNX’s breakout could represent the early stages of a new market phase supported by tangible utility and trader engagement.
Short-Term Decline Amid Broader Strength
In the short term, SNX has faced notable price pressure. SNX has recently fallen by approximately 19.4% over a 24-hour period, from a price of $2.00-$1.59, putting it at the lower end of its daily trading range of $1.55-$2.01. The decline in price indicates significant selling pressure from bears and short-term profit taking from buyers, following recent upward pressure on price.
Trading volume during the decline reached $191 million, showing strong intraday activity as traders reduced exposure amid volatility. SNX’s market capitalization stands at $546 million, closely matching its fully diluted valuation of $547 million, an indicator that nearly all supply is already circulating. While this limits inflation risk, it also reflects lower speculative appetite during correction phases.
Despite the drop, SNX maintains strong performance across longer timeframes. Over the last 30 days, the token is up 145%, and over the past 90 and 180 days, it has gained 140% and 164%, respectively. This broader strength indicates that the recent drop could be a short-term correction in the context of an ongoing recovery instead of the beginning of a new bearish period.
Trader Sentiment and Market Positioning
Data on market positioning reveals contradictory sentiment across the exchanges, with traders exercising cautious optimism. The long-short ratio SNX/USDT on Binance is 1.38, showing much more long than short positions. For the best traders the ratio is 1.50 and position weighted data gives a ratio of 2.84, confirming the larger traders and their optimism with respect to recovery.
In comparison, the OKX exchange shows a lower 0.78 ratio which implies that traders are taking a more defensive stance. The divergence usually happens when the market is in transition and liquidity is simply switching between exchanges based on volatility and sentiment.
Technically, SNX is now nearing the support range between $1.55 and $1.60, where stability may induce a relief or rebound from this price area. If this area is sustained, a move back to about $1.80 $–$2.00 would still be possible.
