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- 1 Synthetix price currently trades at $2.959 while witnessing a gain of 4.45% during the intraday session.
- 2 SNX price struggles to close above the $3 level.
- 3 SNX price trades above 20, 50, 100, and 200-day EMAs.
SNX price has been bullish since the formation of the support level at $2.03 during mid-July 2023, rising toward the $3 level. The cryptocurrency exhibited a strong bullish momentum and has registered a positive market performance over the past few weeks. The surge was linked to the positive sentiment around the Synthetix network.
Synthetix network is planning to release its Decentralized Exchange (DEX) called Infinex with the goal to compete with Centralized Exchanges (CEXs). The exchange is expected to be an improvement of an already existing exchange, Kwenta, which is Synthetix’s derivatives decentralized exchange on Optimism.
The cryptocurrency price attempted to close above $3 multiple times but the presence of bears above the level could not make it possible. The candle of 22 July 2023 did close above $3 but the next candle had enough bearish momentum that it broke the low of the 22 July 2023 candle and melted to form a support.
After the retracement, the price formed support at $2.74 and is currently headed toward the $3.01 resistance level. The previous candle closed bullish and the current candle has broken the low of the previous candle, providing slight confirmation regarding a bullish move.
If the candle can break and close above $3, there is follow-up bullish momentum, there is the possibility that the price might fill the upper wick of the 14th July candle. On the other hand, if the price can shatter the support level of $2.60, then the price might melt toward the $2 level causing a downfall of about 22% in the price.
Will SNX Price Rise $3 Level?
The cryptocurrency price trades above 20, 50, 100, and 200-day EMAs indicating that the price is in bullish momentum. However, the Chaikin money flow score (CMF) is -0.07, suggesting a slight weakness in the market.
Even though SNX price was in bullish momentum, the CMF has been below the 0 mark since 17 July 2023, suggesting the presence of bears in the market.
The relative strength index is 65.45 and nearing the overbought zone suggesting bullish momentum in the price. The bands of Bollinger have expanded indicating increased volatility in the market and traders can expect big moves.
The previous candle has rejected the 20-day SMA of Bollinger and the price is currently headed toward the upper band which resides near the $3.30 level. The long/short ratio is 1.05 with 51.24% longs and 48.76% shorts indicating the dominance of bulls and a higher position of buyers in the last 24 hours.
Conclusion
The market structure and price action of Synthetix (SNX) are bullish due to the positive sentiment igniting in the crypto market and its ecosystem as well. Technical parameters are suggesting that the price is in bullish momentum but traders should wait for the price to close above $3.
Technical Levels
- Major support: $2.74 and $2.60
- Major resistance: $3.30 and $3.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
