Synthetix (SNX) Price Faces 10% Plunge as Bearish Technicals Flash Red
SNX teeters on the edge as technical indicators scream caution—traders brace for potential double-digit losses.
Chart Patterns Turn Ugly
That 10% drop isn't just speculation—it's written in the charts. Resistance levels hold firm while support crumbles, creating a perfect storm for downward momentum. The synthetic asset platform's token shows classic distribution patterns that make technical analysts nervous.
Market Psychology Shifts
Traders who rode the previous rallies now eye exits—profit-taking meets fear in a dangerous cocktail. The DeFi darling faces its first real stress test since last month's rally, and the charts suggest it might not pass. 'It's the same old story—everyone's brave until the charts turn red,' quips one veteran trader between sips of overpriced coffee.
Where's the Bottom?
Watch those key support levels—break them and it's open season for bears. The 10% figure represents just the immediate danger zone; technical breaches could trigger cascading effects across derivative markets. Synthetic assets face their own unique pressures during market downturns—complexity becomes a liability when sentiment sours.
Sometimes the charts do tell the truth—even if it's one nobody wants to hear.
SNX price has formed a descending parallel channel on the 4-hour chart — Sep. 5 | Source: crypto.news
When adding the Moving Average Convergence Divergence indicator to the mix, it had also turned downward. As such, it is safe to say the momentum for now WOULD most likely be bearish.
On top of this, the RSI was at 45, which places it within neutral-to-weak territory, which is another confirmation that the price may continue heading downwards from current levels.
Considering the above, SNX is likely to target the $0.60 support level, which marks a 10% drop from the current price level.
If this support fails to hold, it could open the door to further losses, with a potential retest of its August low of $0.54 possible.
Conversely, a breakout above the upper boundary of the descending channel would invalidate the bearish setup and could signal the beginning of a short-term trend reversal.
