Synthetix Network (SNX) Could Resume the Uptrend

Synthetix Network (SNX) has emerged on the cryptocurrency trading horizon in March 2018, having missed the bull market of 2017/2018, which is probably for the best because the coin’s value hadn’t got blown out of proportion during that bubble, which ultimately led to a price crash and the general disappointment in the majority of altcoins. Instead, SNX has had enough time to make the initial test of the market that took the form of the local high at $0.71, followed by a gradual correction and a prolonged consolidation that lasted from August 2018 until May 2019. At that time, the price of Synthetix Network had been oscillating between $0.032 (the all-time low) and $0.16.

SNX all-time price chart

The spring of 2019 was when the price of SNX had really taken off and got engaged in a bull rally that peaked at $1.47 - the coin’s all-time high. Right now, the coin is valued at $0.78, the level which is 45% away from the said historical high. A quick analysis of the chart above tells us that in November 2019, there has been a reversal of the uptrend with the textbook breakage of the structure as the price began making lower highs/lower lows consistently.

The price action on the chart seemed to have been moving within the conventional downward channel up until the infamous market crash, which resulted in the price being pushed down to $0.4, ultimately forming a descending broadening wedge pattern which is widely recognized as a bullish pattern or even a trend reversal signal.

As you can see, at that particular moment, the price is at the resistance line that could be a point of a breakout and the initiation of a new uptrend. Therefore, the main point of this price analysis would be whether Synthetix Network has enough vigor to perform the necessary breakout, or would it bounce off the resistance and travel southwards to a new lower low. 

The hour of reckoning for SNX

Before delving into the analysis of action on the charts, let’s have a quick recap of SNX’s performance in the so-called ‘gaining department.’ In this regard, Synthetix Token has been a monstrous coin, especially when paired with USD, because its gains from the past year are jaw-dropping 954%. It hasn’t been overly impressive this month with ‘only’ 32% in the green, but that could be explained by the recovery pains after the flash-crash.

1-day SNX/USDT chart

Nevertheless, the price has made it to the resistance line of the descending wedge, and now, as we believe, Synthetix Network is gearing up for the breakout. The first reason for that being a sizable cluster of buying volume that emerged during the previous six weeks. The swelling of the volume aligns with the bullish crossing on MACD that had already crawled above zero, which further proves the notion that the bulls are at the steering wheel in this market.

Secondly, SNX has almost conquered the 200-period EMA, which has always served as an important watershed between an uptrend and a downtrend. The moving average hasn’t been fully conquered yet as there are additional factors that aid in halting the price growth, particularly the 0.5 level of Fibonacci and the wedge resistance.

However, Synthetix Network has a trump card in its pocket, which is called Bitcoin halving that should help push the price above the crucial resistance levels and initiate an uptrend. 

Author: Alex Paulson for Crypto-Rating.com