Here’s How This Chart Pattern May Influence Synthetix Coin’s Near Future Price

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For over five months, the Synthetix coin has been rising at a steady rally with new higher highs and high lows. If we connect the peaks and troughs of the ongoing recovery, the daily time frame chart reveals the formation of an expanding wedge pattern. The coin price has tested the above trendline twice and the lower trendline four times indicates the trades are actively responding to this pattern. Thus, the coin price is expected to reach the pattern potential target.

Key Points

In theory, the rising expanding wedge formation indicates increased volatility in the market.
The ongoing bull trend will remain to continue until the support trendline is intact
The intraday trading volume is $109.6 Million, indicating a 107% gain.

Source- Tradingview

The Synthetix coin price is currently rising using the support trendline of expanding wedge pattern. The coin price has rebounded from this support four times indicating the buyers are activity accumulation at a rising trendline.

However, the most common outcome of the rising expanding wedge pattern is to trigger an aggressive downfall upon the breakdown of this support trendline. By the price time, the SNX price trades at $2.6 and strong rejection from the local resistance of $2.785-$2.72.

This rejection indicates a higher possibility of sustained selling which could dump the altcoin back to a lower trendline. The traders should be careful with this support, as the price behavior around it determines the near future movement.

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A potential breakdown below the trendline will accelerate the selling pressure signal and upcoming downfall. A daily candle closing below the trendline will offer a short-selling opportunity to traders with a potential target of the $2 mark.

On a contrary note, until the pattern’s support trendline is intact, the coin holder can keep a bullish outlook.

Technical Indicators

MACD: Contrary to the rising price action, the falling MACD(blue) and signal line(orange) indicate weakness in underlying bullish momentum. This bearish divergence gives an extra confirmation downfall.

EMAs: Along with the above-mentioned trendline, the 50-day EMA slope for dynamics supports the rising SNX price.