The Synthetix (SNX) price has broken above a long-term resistance level and formed a higher low, expected to continue to rise in April. SNX is the native token of Synthetix, a decentralized synthetic asset issuance protocol built on Ethereum.
Descending resistance line
The Synthetix (SNX) price has been declining below the descending resistance line since May 2021. This line has rejected the price several times and led to the lowest point at $1.4 in late December 2022.
Then, the price created a morning star pattern (green circle) and recovered from there. This move helped the price break above the resistance zone around $2 and the long-term resistance line before retesting the horizontal resistance zone at $3.4.
Although rejected, the SNX price successfully flipped the $2 zone and the resistance line into support (green arrow). This is a bullish signal because it has created a higher low and confirmed the change in sentiment from selling on rallies to buying on dips.
If so, the SNX price is likely to retest the horizontal resistance zone at $3.4 again. This is an important area as it has provided support and resistance since January 2022, except for the above deviation created in early August 2022 (red circle).
Breaking above this zone will confirm that the long-term trend has reversed to the uptrend and it may quickly rise to the next resistance level at $7.1.
The RSI indicator supports this possibility by creating a bullish divergence before the entire uptrend and staying above 50.
Short-term outlook
The 4-hour chart shows that the SNX price is trading inside a descending parallel channel since reaching the high of $3.4 on March 13. This is a bullish pattern that often leads to a breakout in most cases.
Currently, the price is approaching the resistance line of the channel and making another breakout attempt. If successful, the SNX price could rise to $3.4.
However, being rejected by the channel’s resistance line will cause the SNX price to retest the channel’s middle line at $2.47 before making another breakout attempt.
Conclusion
The most likely price forecast shows that the SNX price will continue to rise to $3.4. Breaking this level will confirm that the long-term trend has turned bullish and it may quickly rise to the next resistance level at $7.1.
This view will be invalidated if the price breaks down below the support zone at $2.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
Read more:
- This Altcoin Can Pump 100% Thanks To Korea Narrative Effect
- Jim Cramer Advises Against Investing In Coinbase Stock As It Drops Nearly 30%