Assets covered: Synthetix (SNX)

Metrics used: Exchange Inflow, Daily Active Deposits, MVRV, Social Volume, Weighted Social Sentiment, Price-DAA Divergence, Holders Distribution

Single page with all charts: https://app.santiment.net/charts/snx-july-2021-6130

The synthetic assets fabric just broke $10 mark. It's in top-3 best performing coins within first 100 by marketcap:

Any red flags from here? Any bullish confirmations? Let's see.

Bearish cases

1. Exchange Inflow and Daily Active Deposits

Holy spikes, what do we have here? A red dot on a Daily Deposits chart. It's indicating an anomaly in data. It's much higher than expected to be. Like a small burst in sell side pressure along with spikes in exchange inflow. A red flag as it is.

2. MVRV

MVRV 30d at +38% is getting close to a danger zone (>40%). This is not MVRV level where SNX broke ATH but close to it.

3. Social volume

Social Volume is starting to grow very high. Indicating lot's of talks in social media. Perhaps propelled by a nice price performance. It's somewhat risky because social volume needs to keep surging along with price to support rally. Otherwise price could correct without crowd support.

4. Sentiment

Bullish sentiment spike detected! May be it's time to consider reducing SNX exposure.

Bullish signs

1. Price - DAA Divergence

This indicator is very optimistic, green and high bars. Basically it has just given the strongest "buy" signal for SNX ever. Should be taken with a grain of salt of course. Brian has a great insight explaining how is this indicator working - https://insights.santiment.net/read/5905. Simply saying we had a very strong onchain activity on a stagnating price.

2. Whales activity

A specific group of whales owning from 10k to 100k SNX are now starting to accumulate. Once again. They did have a few "buy the dip" spikes before. Could be a group convinced in SNX bounce back potential. The fact that they are buying now when the coin is pumping is also quite interesting.

TLDR:

SNX looks risky in short term, but quite optimistic in midterm-longterm.

Single page with all charts: https://app.santiment.net/charts/snx-july-2021-6130

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.