Synthetix (SNX) Price Could Increase Over 40% In July, Here’s Why?
The Synthetix (SNX) price has rebounded from the previous long-term resistance level and is trading within a bullish pattern. It is expected to continue rising in July. SNX is the native token of Synthetix, a decentralized synthetic asset issuance protocol built on Ethereum.
Weekly Outlook
The Synthetix (SNX) price has declined since being rejected by the horizontal resistance level at $3.4 on March 6, 2023 (red arrow). During this period, the price dropped below the critical support level at $2, indicating a continuation of the downtrend.
However, instead of a sharp decline, the SNX price bounced off the previously declining resistance line and formed a morning star pattern (green ellipse). This is a bullish pattern that often appears at the end of a downtrend.
Indeed, the price reclaimed the $2 support level and confirmed it as support in the previous week (green arrow). This indicates that the previous incident was just a deviation and a strong upward move may occur afterward.
Therefore, the SNX price is likely to retest the $3.4 resistance level, marking an increase of over 40% from the current level.
Descending Parallel Channel
The daily chart shows that the SNX price has been trading within a descending parallel channel since reaching the yearly high at $3.38. This is a bullish pattern that often leads to breakouts in most cases. The price is currently in the process of breaking above the channel’s resistance line.
The daily RSI indicator has broken above its resistance line and is above 50, showing that the bulls have the upper hand.
Moreover, such breakouts in the RSI indicator often lead to similar breakouts in price action.
Therefore, the SNX price is likely to break above the channel and advance towards the nearest resistance level at $3.
Conclusion
The most likely outlook suggests that the SNX price will rise further in July. The nearest target is $3, with a higher target at $3.4.
This perspective will be invalidated if the price drops below the significant support level 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.
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