After a long-term merger in 2023, Synthetic will make a dazzling revival like a phoenix rising from the ashes. SNX price rebounding from $1.44 support challenges the overhead resistance of the consolidation range and portends a bullish reversal for Synthetix.
However, as the stock begins to pull back from the overall market, Synthetix sellers take the opportunity and challenge the upward trend. Additionally, through the Doji formation, SNX sellers are opposing optimistic SNX price predictions.
Source – Trading View
With the Bollinger Bands maintaining a strict sideways trend, bulls waited for an overall market recovery that would cause the SNX price to surge. Aided by the Uptober rally, Synthetix’s market value increased 135% in two months to over $4.
Synthetix trend reversal leads to further gains as it concludes a prolonged struggle between bulls and bears to regain trend control. However, the Fibonacci retracement level at 23.60% reflects a stubborn bounce resistance and warns of a decline in the SNX price.
Current intraday losses leave SNX trading value at $4.220, with a long-distance Doji candle hinting at a potential evening star pattern. So, considering that sellers are pulling out an evening star-like reversal pattern at overhead resistance, the odds of a bearish bounce for Synthetix increase.
Technical indicators:
MACD indicator: MACD and signal lines are maintaining a positive trend on the weekly chart with a significant rise in the bullish histogram.
Will SNX price stay above $4?
As the overall trend remains positive, the chances of SNX price exceeding $4 increase. Moreover, market sentiment shows an increase in FUD, which could lead to a more fundamental recovery for Synthetix.
According to Fibonacci-based analysis, Synthetix can rise to the 50% Fibonacci level if it exceeds the 23.60% level this month. That means the SNX price could rise 78% to $7.485.
Conversely, the Evening Star may push SNX to retest the $4 breakout.