Synthetix Technical Analysis: SNX Flips Resistance Into Support, aiming for $5

September 23rd, 2020

Synthetix Technical Analysis: SNX Flips Resistance Into Support, aiming for $5 Synthetix Network Token price fell in tandem with other decentralized finance (DeFi) tokens. The lending, borrowing, and liquidity ecosystem has been dealt a heavy blow amid the downtrend in the market. Synthetix cut short the recovery staged following the dip in the first week of September. A step above $6.00 was key for the bull run towards $10.00 but it found the bulls exhausted and the bears ready for revenge.

The declines followed the confines of a parallel descending channel. Support at $3.40 came in hardy, preventing the bearish leg from extending to $3.00. A reversal is currently underway. SNX has already stepped above $4.00, support confirmed earlier in September. Moreover, the DeFi token trading above the parallel channel, after a bullish flag confirmation.

SNX/USD 4-hour chart

SNX/USD price chart
SNX/USD price chart by Tradingview

The uptrend is highlighted by the Relative Strength Index (RSI), after a sustained recovery from the oversold region. If the RSI maintains the positive gradient into the overbought zone, SNX is likely to continue with the uptrend aiming for levels above $5.00.

The resistance at the 50 Exponential Moving Average (EMA) must, however, come down for the expected gains to materialize. More hurdles are envisaged at the 100EMA in the 4-hour range. On the flip side, short term support at $4.00 must be guarded at all costs. Otherwise, SNX could resume the downtrend, eyeing $3.00.

Synthetix Intraday Levels

Spot rate: $4.25

Relative change: -0.025

Percentage change: -0.8%

Trend: Bullish

Volatility: High

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