SNX finds favor with ETH whales but is it enough to turn things around?

• SNX drops to a key support level and ETH whales are accumulating.
• Why a sharp bounceback might not be on the cards.

Synthetix’s native token SNX has been tumbling for many moons as has been the case for most cryptocurrencies. Multiple signs indicate that a potential bullish takeover might be on the way and here’s why.

Read Synthetix (SNX) price prediction 2023-2024

One of the latest Whalestats alerts revealed that SNX was among the top 10 most purchased cryptocurrencies by ETH whales. This alert is of particular interest especially because of the press time price level at which SNX was trading.

JUST IN: $SNX @synthetix_io now on top 10 purchased tokens among 100 biggest #ETH whales in the last 24hrs 🐳

We’ve also got $UNI, $LINK, $SHIB & $CHZ on the list 👀

Whale leaderboard: https://t.co/N5qqsCAH8j#SNX #whalestats #babywhale #BBW pic.twitter.com/QZKsYFHfex

— WhaleStats (tracking crypto whales) (@WhaleStats) December 28, 2022

First, let’s look at SNX’s performance lately. Its $1.47 press time represents a 68% drop from its August highs. This particular August high is important because it marked the end of the token’s last bull run which lasted between June and August. More importantly, the rally started from the same range as its current price range.

Source: TradingView

In other words, SNX’s current price range is within a key support range and is now retesting its June lows. The likelihood of a bullish bounce from this range is quite high, especially now that ETH whales are starting to accumulate.

An assessment of SNX’s metrics may help provide more clarity in regard to whether it is in a good buy range. Investors should note that there is still a sizable chance that the token may continue to go down.

Bullish expectations at the current price level may not necessarily yield a sharp recovery. The supply held by the top addresses is still relatively low, indicating that whale activity is still underwhelming.

Source: Santiment

Whale transaction count has also been lacking in the last four days, confirming a lack of strong demand. The same narrative is playing out on the retail front. The 24-hour active addresses metric registered more activity in the last four days, but, at press time, it was still relatively low.

How many SNXs can you get for $1?

On the plus side of things, the 90-day mean coin age was up in the last four weeks. This is confirmation that most SNX holders are holding on to their coins rather than selling them. Well, this is good for the token’s long-term value.

Source: Santiment

SNX’s 90-day realized cap metric tanked since mid-December. This indicates that most of the investors are not yet in profit.

The alt’s price action already demonstrates friction for the bears. However, bullish demand is still low. Perhaps this is an indicator that we might not see a sharp uptick in the second half of this week.