SNX Shows Short-Term Weakness After Rally: Can Bulls Defend Key $1.2 Support?

• SNX price fell 9.3% in 24 hours, with trading volume down 30%, per CoinMarketCap data.

• The token underperformed Bitcoin, which held $108k support while battling $110k resistance.

• Technical indicators show bearish signals, with SNX approaching the $1-$1.2 demand zone; 78.6% Fibonacci level at $1.26 adds pressure.

Discover why Synthetix SNX price dropped 9.3% recently, impacted by profit-taking and AWS outage. Analyze key levels and market trends for informed trading decisions today.

What Caused the Recent Synthetix SNX Price Drop?

Synthetix (SNX) price has declined 9.3% over the past 24 hours, trading just above the critical $1.2 support level after a strong rebound from October 10th lows. This drop follows profit-taking by holders after SNX rallied to $2.58, compounded by reduced trading volume of nearly 30% and an Amazon Web Services outage on October 20th that disrupted platforms like Coinbase and Base, affecting liquidity and triggering sell-offs.

How Are Technical Indicators Signaling SNX’s Market Direction?

SNX’s 1-day chart reveals a bearish internal structure, with the price breaking below the previous week’s swing low at $1.32 and hovering near the 78.6% Fibonacci retracement at $1.26. The Chaikin Money Flow (CMF) stands at -0.13, indicating significant capital outflow and seller dominance that could push prices lower toward the $1-$1.2 demand zone, which previously fueled the rally to $2.58. In contrast, the Directional Movement Index (DMI) suggests ongoing bullish momentum, but the bearish structure and CMF take precedence, underscoring the need for bulls to defend this key area. Santiment metrics further highlight dormant token movements over the past ten days, with daily active addresses declining sharply since the October 10th liquidation event. The mean coin age has stagnated, showing limited accumulation, while a high percentage of supply in profit aligns with increased dormant circulation, confirming profit-taking as a primary driver of the downturn. According to TradingView data, these patterns point to short-term weakness relative to Bitcoin, which maintained $108k support amid efforts to breach $110k resistance.

Frequently Asked Questions

Why did Synthetix SNX underperform the broader crypto market recently?

SNX dropped 9.3% in 24 hours while the crypto market gained 0.94%, driven by profit-taking after a post-October 10th rally and an AWS outage on October 20th that hit trading volumes on platforms like Coinbase, reducing liquidity and amplifying sell-offs, as reported by CoinMarketCap.

Can SNX recover if it holds the $1.2 demand zone?

Yes, defending the $1-$1.2 zone could spark a bounce, potentially flipping the 1-day structure bullish if prices exceed $1.83. However, current CMF negativity and declining active addresses from Santiment data suggest bulls face exhaustion, requiring strong volume to regain control.

Key Takeaways

• SNX’s 9.3% drop highlights short-term weakness: Trading volume fell 30%, underperforming Bitcoin’s stability at $108k, per CoinMarketCap.
• Profit-taking dominates after rally: High supply in profit and dormant movements indicate holders cashing out, limiting accumulation as shown in Santiment metrics.
• Watch $1-$1.2 zone for reversal: Bulls must defend this demand area and push beyond $1.83 to counter bearish CMF signals and restore bullish structure.

Conclusion

The recent Synthetix SNX price drop of 9.3% stems from profit-taking following the October rally and disruptions from the AWS outage, with technical indicators like CMF signaling seller pressure near the $1.26 Fibonacci level. As SNX approaches the vital $1-$1.2 demand zone, holders should monitor Bitcoin’s performance around $110k resistance for broader cues. Staying informed on platform stability and on-chain metrics from sources like Santiment will be key; consider positioning for potential bounces while managing risks in this volatile environment.

Profit-taking activity forces SNX to retrace its rally

The $1 million trading competition announced in September led to increased demand for SNX tokens as participants tried to earn a place in the competition.

Even after the liquidation event on the 10th of October, Synthetix managed to rebound strongly.

Source: SNX/USDT on TradingView

The 1-day chart showed a bearish internal structure as SNX broke down beneath the previous week’s swing low at $1.32. It was trading just above the 78.6% Fibonacci retracement level at $1.26.

Just below it, the $1-$1.2 area marked a demand zone that sparked the most recent impulse move higher to $2.58.

The technical indicators gave mixed signals. The CMF was at -0.13 to show heavy capital flow out of the market. Seller dominance was likely to drive prices lower.

However, the DMI showed that the Synthetix token continued to trend bullishly. The CMF and the bearish internal structure overrule the DMI here. The $1.2 demand zone must be defended.

Source: Santiment

Santiment data revealed a large amount of dormant token movement over the past ten days. The daily active address count has also tanked compared to this wave of selling following the 10th of October.

The mean coin age was unable to climb higher. Together, the metrics showed a lack of accumulation from SNX holders.

The high percentage of supply in profit, combined with the dormant circulation uptick, was proof of profit-taking activity, throwing doubt on SNX’s potential to recover.