Synthetix (SNXUSD) Keeps Tapering Downward
October 13, 2021
#Crypto#Crypto Analysis#CRYPTOCURRENCY#Daily Chart#Market Expectation#Price Action#SNX
SNX Analysis – Price Keeps Tapering Down a Descending Channel
SNX keeps tapering down a descending channel as bearish pressure keeps acting on the market. The coin was trapped in a downtrend on the 20th of September. The $12.100 resistance was used to keep the market at bay, and thereafter SNX started ranging downward through a channel. This is evident in the manner in which prices form consecutive lows and highs. The coin is currently approaching the channel’s lower border.
SNX Key Levels
Resistance Levels: $11.100, $12.100, $13.600
Support Levels: $9.000, $7.300, $5.850
Since dropping to $5.850 on the 5th of June, SNX has been on a generally upward trajectory. This continued till the coin confronted the $13.600 resistance level, which prevented it from making a new higher high on the 6th of September. The reaction of the bulls to this was a huge pullback, which resulted in a forceful surge above the resistance. Despite the success of this, the bulls ran out of steam and an equal market plunge followed.
The bears are demonstrating strength in possession of the market. Price keeps making lower lows and lower highs. The middle line of the Envelope indicator can be seen to be acting as a resistance to the market, pressing it downward. The Stochastic Oscillator shows the coin undulating in the selling half of the chart since the 21st of September when price dropped from the powerful upsurge. Currently, SNX is in the oversold region, and a cross at the tip of the lines shows a reversal is imminent.
On the 4-hour chart, the coin can be seen gliding downward, through the channel. However, the $9.000 price level has remained impenetrable, thereby preventing the market from creating a new lower low. However, despite the EMA of the Envelope indicator remaining above the market, SNX seems to already be reversing at $9.000. This is confirmed by the Stochastic Oscillator, which sees a cross in its lines upward. The upper border just below $10.500 is the next target now.
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