The decimation of crypto prices didn’t spare DeFi tokens. Synthetix prices are down double digits on the last day as bears press the sell pedal.
After months of a steady uptrend, it appears that SNX tokens are cooling off, falling from their 2021 highs, providing yet another opportunity for derivatives traders to profit from the dip.
As of Feb 26, the SNX price is changing hands at around $18, shedding 11 percent on the last day and 22 percent week-to-date. Notably—and as expected, SNX prices contracted versus BTC, losing 12 percent in the previous trading week. Encouragingly, prices are steady on the last day versus both ETH and BTC.
Meanwhile, trade volumes are also increasing. The bad news is that SNX prices are being clipped.
Accordingly, the rising trading volumes indicate potential bears unwinding their longs. Still, the reaction at around $18 support may define the SNX/USDT medium-term trend in the immediate term.
Synthetix (SNX) Price Overview
The SNX/USDT price is trading within a bearish breakout pattern.
SNX bears forced prices below the multi-week middle BB support—now resistance line, on Feb 22. Subsequent high-volume confirmation on Feb 23 and the failure of bulls to respond, yanks price action in favor of sellers.
Therefore, while buyers are confident, the SNX price could correct the Dec 2020 highs of around $8 in a retest. Accordingly, from now on, SNX bulls may find support at Feb 23 lows of about $13.5 and later $11—the 1.618 Fibonacci extension level of the H2 2020 trade range.
A sharp re-bounce from spot rates, rewinding losses of Feb 22 and 23, with higher trading volumes, would resuscitate bulls choking under the deluge of sell orders. On the other hand, if things remain as they are, the SNX price may edge lower in confirmation of last week’s double bar bear reversal pattern.
Synthetix (SNX) Market Movers
>Synthetix is a DeFi protocol allowing trustless trading of derivatives. It is one of the largest protocols managing over $2 billion of TVL.
The protocol is decentralized with token holders in charge via the Spartan Council in line with blockchain principles.
One of the most important governance changes in the history of the @synthetix_io project has just been put up for vote in discord. This would migrate SIP voting to the Spartan Council handing over complete control of all protocol changes to the Council.
— kain.eth L222 (@kaiynne) February 9, 2021
At a time when Gas problems dominate Ethereum channels, there are concrete plans to move to Layer-2 via Optimistic Rollups. These are in advanced stages and would immensely benefit the community besides accelerating the adoption of Ethereum and its financial dApps.
Overlords, please forgive me. I'm about to drop some juicy alpha. 🦁
— Kwenta – We're hiring! (@kwenta_io) February 25, 2021
Synthetix Price Prediction
The SNX/USDT price is down 11 percent on the last day.
In a bearish breakout pattern, visible in the daily chart, sellers are in the driving seat. Notably, the SNX/USDT price continues to oscillate inside Feb 22 and 23 bear candlesticks.
Technically—from volume analysis, this is bearish. For bulls to be in control, SNX prices must rally above $24, break above the middle BB—previous support now resistance, and unwind this week’s losses.
On the other hand—and with sellers in control, every high could be a liquidating opportunity for sellers. Losses below $13.5—Feb 23 lows, confirms sellers of this week. Accordingly, prices may crater towards $11 and H2 2020 highs of around $8.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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