SNX is stuck in a massive 6-month long falling wedge against the DEFIPERP index and it looks like it's gearing for a breakout.
I marked some areas of interest where I will be looking to rotate out of SNX in between cycles.
It's hard to estimate when such targets could be reached however. Certain catalysts, like the futures launch, could send it flying in a short...
Chart is fairly straight-forward. I rounded up the S&R values to make it easier to reason about.
So, what are we looking at?
SNX has been in a steady downtrend vs ETH ever since March 2021. We can see somewhat of a fractal forming between the bottoming structure back in Feb-June 2020 and May-present. One important difference, of course, during the previous bull...
What is this chart? Essentially, it shows the performance of SNX vs an index of 25 Defi coins, such as LINK, SOL, CRV, etc.
We're looking at a few things:
First off, it's clear that SNX has massively underperformed the DEFIPERP index as a whole. With some rare, short-lived exceptions, it's been in a downtrend since Jan 2021. Second, notice the rounded bottom....
My expectation is that Defi is going to run hard for 2-3 more months until the EOY.
As you can see from the previous cycles, this one again seems to go parabolic, albeit long term as Defi hype dies down and gets replaced by the new flavour of the year, cycles will become longer and weaker until no longer relevant.
Don't marry your bags.
PS: This is not financial advice.