Synthetix Price Forecast: SNX to drop before the next leg up

Synthetix price has made an excellent recovery after the global glut in cryptocurrencies these past two weeks. By pairing losses and even consolidating above the monthly R1, SNX is in a promising upward trend.

Synthetix price needs to correct first before taking out $14 to the upside

The rejection of the $13.91 barrier was hit hard and made Synthetix price tumble down to $11.55. The $13.91 level takes us back to the week of April 26 as the starting point for a rally higher with a 95% upside profit. This level needs to be watched closely in case SNX consolidates back above it. 

To get above $13.91, Synthetix price needs to squeeze out the short sellers that entered around the same level. This can only be done if SNX corrects further down toward $10.09. That level matches the 55-week Simple Moving Average (SMA), which had already acted as support the week before and made SNX rally 45%. 

Suppose the 55-week SMA does not do the trick. In that case, a step lower for Synthetix price offers a zone where it has three reasons to expect support and buyers coming in.

Between $9.03 and $8.51, SNX has the 200-week SMA at $8.51. Just above at $8.77, Synthetix price has the orange ascending trend line that comes into play and will act as a pivot point for buyers to get in and defend the upside. Last but not least, it has the monthly pivot at $9.04 that already acted as resistance in the first week of July and now should act as support if SNX comes down to retest.

The red horizontal line at $13.90 and the yellow ascending trend line act as a weekly triangle that should push Synthetix price above the red line at $13.90. But the yellow ascending line needs to attract more buyers first before SNX can push further up. Long term, look for a retest of the descending trend line from $20 to $22.

Should the supports described above not hold, expect completion of the break lower and a retest of $6.