SNX Technical Analysis: Will This Weekend Reversal Sustain Above $3?

Key Technical Points:

Past Performance of SNX

The Synthetix (SNX) price experienced an increase in bearish influence last week near the $4.15 support zone and the 200-day EMA. The bullish reversal due to the failure to sustain above the $4.0 mark results in a 35% drop to reach the $2.68 support level. However, the buyer reclaims the trend momentum this Sunday to form a morning star pattern with a 13% price jump.

Source - Tradingview

SNX Technical Analysis

The SNX price action projects an increase in bearish influence over the daily candle, evident by the 4.93% price drop. Hence the sellers are undermining the morning star pattern increasing the likelihood of a price drop to the psychological mark of $2.0.

With the recent crash in the Synthetix token price, the 50 and 100-day EMA fail to give a bullish crossover. Hence, the crucial EMAs reclaim the bearish alignment increasing the possibility of a downtrend continuation.

After the phenomenal drop in underlying bullishness last week, the RSI indicator displays a lateral trend in the nearly oversold zone. Moreover, the MACD indicator shows the fast and slow lines maintain a declining trend to cross below the zero line. Hence, the technical indicators display an increase in selling pressure.

In a nutshell, the SNX technical analysis displays a low likelihood of a bullish reversal sustaining this week.

Upcoming Trend

SNX prices can drop below the $2.50 mark to test the $2.20 support level this week if the selling pressure sustains. However, with an uptrend continuation with lower price rejection in the daily candle, the prices can revert to the $3.58 resistance level.

Resistance Levels: $3 and $3.58

Support Levels: $2.68 and $2.50