SNX (Synthetix) Is Going Parabolic
Although the crypto market has been pulling back, SNX has been heading ever higher! The coin is already up by more than 100% in 2021, and this may be just the beginning!
SNX Momentum
According to Nicolas Darvas, the writer of the famous book "How I Made $2,000,000 in the Stock Market", the stocks that are the most resilient in bear markets, and that even try to push up, are usually due to experience strong growth when the bear market is over. We can apply this theory to cryptocurrencies as well. The coins least affected by the bear market and those that recover quickly will probably boom in the bull market. SNX currently fulfills these criteria as the crypto market took a hit early this week, but the token has already recovered and made new all-time highs!
Watch The Volatility
If you decide to enter SNX (or you are already long), then it is essential to note that the volatility has increased strongly in 2021, as portrayed by the ATR. The Average True Range (ATR) is a volatility indicator. Many traders use the ATR as a trailing stop loss; for example, they may place their stop loss at two times the ATR. So if you buy SNX at $15, and the ATR has a value of $1.88, then your stop loss would be at $15 - (2*$1.88) = $11.24.
On January 1st, the ATR value was $0.88, while today, the ATR value more than doubled at $1.88. Even if you don't use the ATR as a trailing stop loss, you can use it to judge how volatile the market is and whether you should make your stop loss wider or narrower.
