SNX Technical Analysis: Buyers Prepare The 50-day EMA Breakout

Key technical points:

Past Performance of SNX

The SNX price action shows a V-shaped reversal from the psychological mark of $1.50 resulting in an 80% jump within the last 48 hours. The reversal rally breaks above the long-coming resistance trendline and the 20-day EMA(blue). However, the higher price rejection in the daily candle makes it difficult for the market price to sustain above the 50-day EMA(red).

Source- Tradingview

SNX Technical Analysis 

The SNX prices surpass the $2.50 mark and attempt to sustain above the $3 mark. The increased trading volume to support the reversal rally displays the bullish commitment. This increases the likelihood of the $3 breakout. The MACD indicator shows a reversal in the fast and slow lines leading to a bullish crossover which marks a buying signal for short-term traders. Moreover, the rising trend in resurging MACD histograms displays increased demand for the Synthetix token.

The RSI slope spikes quickly after reaching the oversold boundary to surpass the 14-day SMA and the halfway line.  In addition, the uptrend continues in the nearly overbought zone to reach the overbought boundary. Hence, the indicator reflects a sudden boom in the underlying bullishness. The bullish reversal over the weekend influences the 20-day EMA to take a bullish turnaround. However, the prices must sustain above the 50-day EMA and sabotage the higher price rejection to increase the likelihood of a prolonged uptrend. In a nutshell, the SNX technical analysis forecasts a reversal rally surpassing the $3.50 mark if the prices sustain the 50-day EMA.

Upcoming Trend

The upcoming trend in the SNX prices seems highly bullish as the reversal rally prepares to break above the $3 mark. And, if the breakout rally gains momentum, the market value will skyrocket above the $3.58 mark.

Resistance Levels: $3 and $3.58

Support Levels: $2.36 and $2