Technical Analysis

Synthetix (SNX) price prediction: Is the bearish trend ending at $1.084?

Updated: Aug 27, 2024

Published: Aug 15, 2024

SNX has been entrenched in a macro bearish pattern for an extended period, consistently forming lower lows and lower highs. This ongoing downtrend is highlighted by a key support level around 1.4, which has held firm since June 2022. Despite a significant 250% rally from this support level, the asset only managed to establish a new lower high, indicating continued bearish sentiment

Key observations: Macro bearish pattern

SNX has been trending downwards, forming lower lows and lower highs. The long-standing support at 1.4, which had held since June 2022, was a critical level that, despite a substantial rally, did not lead to a trend reversal

Monthly chart of SNX USDT on Binance showing a macro bearish pattern with lower lows and lower highs marked.

Recent lower swing

The monthly chart reveals a further decline, with a new lower swing low at 1.084. This reinforces the bearish trend on the higher time frame, signalling that SNX is continuing its pattern of lower lows and lower highs

Uncorrelated movement

Notably, SNX's bearish pattern appears to be uncorrelated with broader market trends, suggesting unique internal factors are at play.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Potential scenarios: Bearish continuation

Given the established macro bearish trend, with consistent lower lows and lower highs, the likelihood of further downside remains strong. The recent drop to 1.084 confirms the bearish structure, making it a less attractive option for accumulation at this time.

Neutral stance on recovery

While there is always a possibility that SNX could see a rebound from current levels, from an opportunity cost perspective, other assets present more favourable risk-reward profiles. The current market environment, coupled with increased competition among altcoins due to innovation and news, suggests that better opportunities exist elsewhere.

Conclusion

Bearish/Neutral: SNX is firmly in a macro bearish trend, characterised by lower lows and lower highs, with the most recent support at 1.084 confirming the continuation of this pattern. Given the current market environment and the asset's uncorrelated bearish movement, we do not recommend accumulation or bidding on SNX at this time. Investors may find more attractive opportunities in other assets, particularly given the heightened competition among altcoins.