Synthetix token extended weekly gains on Tuesday by adding another 6%
The token trades below a descending trendline
Bears may attempt to force a correction if buyers weaken at $2.0
Synthetix token price (SNX/USD) initiated an accelerated recovery on Tuesday, jumping by an intraday of 6%. The token’s value has now increased by double digits in the past week. The recovery happens from the November lows of $1.57. The cryptocurrency was trading at $1.91 as of press time. Is it too early to make a bull call?
Fundamentally, SNX is earning bullish momentum from a slightly improved crypto sentiment. Most cryptocurrencies traded in the green in the past week despite falling slightly in the last 24 hours. The recoveries in SNX, however, face a snag as the cryptocurrency heads for resistance at the descending trendline.
SNX meets resistance at the descending trendline
SNX/USD Chart by TradingView
Technical indicators are bullish for SNX. The MACD indicator initiated a bullish crossover, despite remaining in the bear zone. The RSI shows improving momentum, and the reading has moved above the 50 midpoint level. That suggests a high demand for SNX.
SNX buyers now face a test at the descending trendline. That should coincide with a price of $2, implying that bulls could remain in control for at least one or two days.
SNX concluding thoughts
Although SNX buyers could remain in control, for now, bulls must overcome bears at the descending trendline. The price is already facing a correction as it approaches the crucial dynamic resistance level.
If bulls recover above the crucial zone, $2.7 is the next potential resistance for SNX. Conversely, a rejection at the descending trendline could pit SNX back to the $1.5 bottom.
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