Why Synthetix Network (SNX) Might Be Heading Lower After 5% Slide

Why Synthetix Network (SNX) Might Be Heading Lower After 5% Slide

In Brief

  • The price of Synthetix Network (SNX) has fallen to $2.70, down by -5% over the past week.

  • The market overall is down by -3.1% in comparison.

  • 7 past occurrences of the takuri candle indicator suggest that prices could be headed lower.

Synthetix Network has dropped sharply recently, and unfortunately for investors historic price action suggest that the market is heading lower.

Now, crystal balls don't exist. We can study what has happened in the past though. Stack analyzed the previous performance of Synthetix Network (SNX) in similar circumstances to try and predict future price action.

Specifically, we looked at 7 past occurrences when the takuri candle was spotted and here is what we found.

Why Synthetix Network's Price Could Move Lower

In summary: we have seen situations like this before.

Over 7 past occurrences, we found that 100% of the time the price increase by a median -11.74% over the following 7 days.

For example, on November 8th, 2021 we saw the indicator and a price move of Synthetix Network move by 0%, only to then move by -8.5% over the following 7 days.

Synthetix Network chart

Chart shows the historic occurrences of this indicator with the price.

What does this mean?

Investors need to remember that this is just one signal. Many of factors can affect the price.

Crypto prices are can be influenced by social media, developer activity, the number of exchanges and on-chain activity. All of these factors are factored in when Stack ranks crypto assets.

{If you think that other factors, including the broader crypto market, are favorable given the suggested 7-day holding period. Then it might be a good trade, or a good entry point for longer term investors. We recommend that you do your own research (DYOR) before making any investments. |It's important to factor in everything

What other factor might be moving the price of $SNX?

Lot's of factors can influence the price of any investment. These are just a few that could impact the price of Synthetix Network.

The broader market

The broader market is also down by a median -3.1%. Most cryptos are highly correlated, especially to Bitcoin. So this is likely affecting the price.

Developer activity

How active have the devs for Synthetix Network been?

During the past 4 weeks there have been 132 commits on Synthetix Network's Github account. This compares to an average of 2 commits per week.

Identifying significant changes in developer activity can suggest potential new products being worked on and identify abandoned projects that might be in decline.

Social activity

Social media can have a powerful impact on cryptocurrency prices. Even a single tweet can move markets (we're looking at you Elon). It's difficult to gauge sentiment just by scrolling, but you can use tools like Stack to monitor the growth of a project's followers.

Synthetix Network's Twitter followers have risen by 1% over the past 7 days. You can view stats for other networks in the full report for Synthetix Network.

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