SNX Technical Analysis: High Supply Inflow Traps Bullish Trend

Key technical points:

Past Performance of SNX

The SNX coin price action shows a sudden halt in the bearish trend after a downfall of 40% within ten days. The sudden break in the descent comes with a bullish retracement of 18% in the last four days and challenges the 50 and 100-day EMAs. However, the trend shows higher price rejection near the EMAs resulting in long wick formations in the daily candles. 

Source-Tradingview

SNX Technical Analysis 

SNX coin price strives to surpass the $5.50 mark, but the increased supply inflow knocks down the bullish attempts. Hence, the chances of the bullish reversal succumbing under the high supply inflow increases and warns $5 fallout. 

The crucial daily EMAs maintain a bearish alignment as the 50 and 100-day EMAs fail to get a merger and deflect the bullish uprising. Hence, the EMAs play a substantial role in dynamic resistance and promote the downtrend.

RSI Indicator: The RSI slope reaches the halfway point after a V-shaped reversal in the nearly oversold zone. However, the uprising faces a resistance confluence of the 14-day average and the halfway mark. 

MACD Indicator: The MACD and signal lines project a loss of bearish momentum as they approach the zero line mark and hint at a bullish crossover. Hence, the indicator proposes the possibility of price sustaining above the $5 mark.

In a nutshell, the SNX technical analysis emphasizes the increasing duality in the price chart and the increased volatility in the price.  

Upcoming Trend 

The SNX/USD daily chart shows a bullish reversal in action, but the increased selling activity doubts the continuation above $5.50. Therefore, traders must wait for the price action confirmation before picking either side. A closing above the $5.50 will ensure a jump to the 200-day EMA at $6.50. However, closing below $4.80 will result in a fall to the $4 mark.

Support Levels: $4.80 and $4

Resistance Levels: $5.50 and $6.50