Synthetix is down by more than 5% at the time of writing. The token is experiencing slight recovery from a dip to a low of $2.63. As a result, it is currently exchanging at $2.67 and is showing small signs of further increases.
However, it is worth noting that the asset lost a key support during the most recent drop in value. The $2.80 barrier although not strong, was significant as it guaranteed that prices remain close to $3. Most trails at the resistance start with a build-up within this price level. Losing it leaves the $2.60 support vulnerable.
SNX kicked off trading a little bullish as the 2-hour chart shows two green candles after midnight. However, at 06:00 am UTC, it made its first attempt at $2.80. By noon, the barrier broke and it was mostly downhill until its low and rebounding.
Synthetix may see More Decreases
On the 2-hour chart, there are several indications of more downtrends ahead. One such is the Moving Average Convergence Divergence. During the flip of the highlighted mark, the indicated displayed a bearish divergence.
The Relative Strength Index is another bearish metric. A closer look at it shows its trending at 30. This means the asset is very close to becoming oversold. This also translates to the daily chart as the most recent reading placed it at 53.
MACD is also displaying a bearish divergence which may indicate more price decreases.
Based on previous price movements, the asset under consideration may see significant losses in the next 24 hours. During this period, one key level pay attention to is the $2.60 support.
Over the last fourteen days, Synthetix retested this key barrier with little success. In cases when it broke, the asset ended the day above this critical level. On occasions where this fails, SNX was sure to go as low as $2.40. The extent of the selling pressure in the coming hours will determine how the altcoin may react.
