After one of its strongest rallies in recent months, Synthetix’s native token SNX is now showing signs of a pullback. The price has slipped by more than 10% in the past 24 hours and is currently hovering around $1.79. While it’s still up nearly 60% on the week, this drop puts the token in a critical position as it tests a major technical level.
Key Support Now in Focus
After topping out near $2.41, SNX has retraced back to the 38.2% Fibonacci level – a zone that often acts as support in trending markets. If buyers defend this area, it could offer a base for renewed upside. A failure to hold may shift focus to lower levels and raise questions about the strength of the recent rally.
Momentum indicators are now moderating. The Relative Strength Index has pulled back from its previous overbought readings, with RSI(14) dropping to 63 and RSI(7) at 61. This suggests a slowdown in buying pressure, but not yet a reversal.
Meanwhile, Bollinger Bands show expanding width, which points to heightened volatility and a possible period of sideways or choppy price movement.
Despite the decline, the overall trend strength has not broken down. The Average Directional Index (ADX) remains at 45, which typically signals that a trend is still active. At the same time, increased volatility shown in the Bollinger Bands may create larger price swings – both upward and downward – over the short term.
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Why SNX Surged
SNX’s rally was largely driven by renewed attention on the Synthetix protocol and its upcoming launch of a new perpetual decentralized exchange (Perp DEX) on Ethereum. The protocol’s team confirmed plans to offer gasless trading, multi-collateral support, and a $1 million trading competition starting later this month. The announcement attracted strong interest, sending trading volume up sharply and pushing SNX to a 10-month high.
The price surge also followed a broader market recovery after a recent selloff. As traders rotated back into DeFi tokens, SNX benefited from renewed demand and rising speculation around the impact of the DEX launch.
Read also: Synthetix (SNX) Surges Over 100% Ahead of Perp DEX Launch
What’s Next?
The technical picture shows a strong trend with reduced momentum and growing volatility. SNX’s ability to hold the $1.75–$1.80 support zone will likely guide the next move. While indicators help highlight possible scenarios, they don’t predict outcomes. News flow, market sentiment, and reaction to the DEX launch will likely play a bigger role than chart patterns alone in the days ahead.
