SNX Technical Analysis: For How Long Synthetix Will Float Above $2.20?
Table of contents
Key Technical Points:
Past Performance of SNX
The SNX price shows a bullish reversal from the $2.20 support level to rise above the 50-day average line. However, the increased selling pressure results in a continued bearish trend cracking under the SMA, inchoating a resistance trendline and descending triangle pattern. Hence the overall outlook remains bearish, teasing a potential fallout of the triangle pattern.
Source - Tradingview
SNX Technical Analysis
The SNX price action shows a bullish candle forming with a growth of 3.27% today, which teases a potential bullish reversal to the resistance trendline. However, the probability of a bullish breakout decreases as the selling pressure over the crypto market increases.
The DMI indicator shows that DI lines are preparing a bearish crossover with a drastic fall in the ADX line. Hence the technical indicator shows a severe drop in the underlying bullish momentum, which will shortly lead to a bearish breakout.
Furthermore, the Stochastic RSI indicator shows an ongoing bearish trend in the K and D lines, ready to cross under the oversold boundary. Hence the indicator undermines the bullish candle formation and teases a downtrend continuation.
As per the SMAs, The 50-day SMA provides a dynamic resistance, and its breakout will result in a bullish trend.
In a nutshell, the SNX technical analysis forecasts an increase in selling pressure which may drive the market value below the psychological mark of $2.
Upcoming Trend
If the selling pressure grows within the triangle pattern, a bearish breakout will result in a downtrend to the psychological mark of $1.50. Conversely, the bullish breakout of the resistance trendline, a jump to the $3.50 resistance level or 100-day SMA, seems inevitable.
Resistance Levels: $3 and $3.50
Support Levels: $2.20 and $2