The Synapse (SYN) coin could be in a massive move, according to data shared today by market analyst Crypto Ronald. Today, the cryptocurrency experienced a 1.09% modest rise, showing its consolidative movement, which makes the analyst believe that the asset could be preparing for a big jump soon.
Synapse (SYN) is a DeFi token powering Synapse, a decentralized protocol that offers an interoperability solution that enables users to transfers asset between various blockchain networks efficiently and securely. Over the past multiple weeks, the DeFi asset found itself in a crucial consolidation phase, trading in a tight range that tested investors’ and traders’ patience.
SYN’s price, which currently trades at $0.04639, has been down 6.7% and 30.4% over the past week and month, respectively. This period of sideways movement happens when the wider cryptocurrency market is facing significant volatility due to the ongoing geopolitical conflict in the Middle East, a macroeconomic uncertainty that has shaken investor confidence in risky assets like crypto.
Major cryptocurrencies like Bitcoin and Ethereum slipped, falling to the current levels at $67,344 and $1,946, as sell-offs in risk assets increase amid the Iran conflict. The wider risk-off sentiment currently seen in the crypto market leaves SYN near its daily lows at $0.04639.
SYN Forms Bullish Pattern
Consolidation phases are frequently noticed in the crypto market, often functioning as a precursor to massive price momentum. Technical analysis shows that since last month February 12, Synapse has been trading in a narrow range between $0.0520 and $0.0456, which functions as a crucial stress test zone. This region represents a confluence of resistance and support levels, where market players are battling to determine the next directional movement.
As per the weekly trading chart shared by the analyst, Synapse has entered into a critical juncture in its consolidative phase as market participants are engaging in an important investor behavior shift. On-chain metrics show that token distribution among long-term holders is finally decreasing as major profit-taking activity appears to be coming to a complete exhaustion. Despite notable price declines, Synapse has defended its price around the $0.0456 support level, showing signs of stabilization. This means that buyers defend this support with recovery attempts towards the resistance zone at $0.0520.
Technical analysis points out that a classic inverse head and shoulder pattern is forming in SYN’s weekly chart, a traditional bullish pattern signaling that the asset is preparing for a massive breakout from its months of sideways consolidation. Defending its support at $0.0456 suggests a growing buying pressure, signaling that buyers are stepping into the market, taking advantage of market dips. The formation of such an inverse head and shoulders pattern projects an upcoming 41-54% upside potential.
The current price of Synapse is $0.04672.Synapse And Its DeFi Activity
While SYN price remains quiet, on-chain activity under its market is surging strongly, as indicated by the 49.73% increase in SYN’s trading volume noticed today, according to CoinMarketCap data.
This shows rising user interest in the platform, driven by its DeFi cross-chain interoperability capability. In short, the surge in Synapse’s DeFi activity is an indicator of crypto market health despite being weighed down by macro factors.
Source: https://blockchainreporter.net/syn-defends-0-0456-support-as-consolidation-sets-up-the-next-breakout-with-potential-54-gains/
