SNX Maintains a Bearish Outlook
Synthetix Network (SNX) has been one of the most profitable investments this year. However, the token is now facing a bearish outlook.
Recap: The Synthetix project is among the largest exchanges in decentralized finance. They have partnered with ChainLink to bring information about asset prices to blockchain without the need of a central party. Synthetix allows its clients to trade cryptos, currencies, precious metals, stocks, and other assets in the form of ERC20 tokens. This innovative system enables clients to "bet" on an asset's price without actually holding it (similar to CFDs).
SNX on the Chart
SNX rose to its all-time high of $7.75 on September 10, marking a 540% growth from January of this year. However, for the past three weeks, the token has maintained a bearish outlook comprised of lower lows and lower highs.
An adequate strategy to identify the short-term direction in the crypto market is the 10 and 30 Exponential Moving Average (EMA) crossover. When the 10 EMA crosses over the 30 EMA upwards, a buy signal is given, and if it crosses the 30 EMA downwards, a sell signal is given. This strategy provides many fake signals in a ranging market, and you shouldn't rely solely on it. However, when the market has a clear direction, the strategy works well in identifying the trend. We have received a bearish signal from this strategy on September 30th.
If the price is unable to break the red trendline we drew, then we could use it as confirmation together with the bearish crossover of the 10 and 30 EMA that the token will continue selling off. There has been a reliable support between $3.8 and $3.5, which caused the token to bounce twice. If the price reaches that level again, then there is a strong chance that the token will bounce, especially if the general markets turn bullish. If that level breaks, then we can expect the price to reach the next support level at $2.75.
Recap: The Synthetix project is among the largest exchanges in decentralized finance. They have partnered with ChainLink to bring information about asset prices to blockchain without the need of a central party. Synthetix allows its clients to trade cryptos, currencies, precious metals, stocks, and other assets in the form of ERC20 tokens. This innovative system enables clients to "bet" on an asset's price without actually holding it (similar to CFDs).
SNX on the Chart
SNX rose to its all-time high of $7.75 on September 10, marking a 540% growth from January of this year. However, for the past three weeks, the token has maintained a bearish outlook comprised of lower lows and lower highs.
An adequate strategy to identify the short-term direction in the crypto market is the 10 and 30 Exponential Moving Average (EMA) crossover. When the 10 EMA crosses over the 30 EMA upwards, a buy signal is given, and if it crosses the 30 EMA downwards, a sell signal is given. This strategy provides many fake signals in a ranging market, and you shouldn't rely solely on it. However, when the market has a clear direction, the strategy works well in identifying the trend. We have received a bearish signal from this strategy on September 30th.
If the price is unable to break the red trendline we drew, then we could use it as confirmation together with the bearish crossover of the 10 and 30 EMA that the token will continue selling off. There has been a reliable support between $3.8 and $3.5, which caused the token to bounce twice. If the price reaches that level again, then there is a strong chance that the token will bounce, especially if the general markets turn bullish. If that level breaks, then we can expect the price to reach the next support level at $2.75.