Synthetix (SNX) is down 6.7% this week to $0.655, underperforming the broader crypto market, where Bitcoin (BTC) has slipped 3.3% to $113,771. Investors are on edge ahead of Fed Chair Jerome Powell’s speech on Friday, fearing he may double down on a hawkish stance after disappointing U.S. inflation data.
Despite the drop, SNX remains technically resilient above the $0.500 support level, which has held firm since October 2019. Sentora data shows that 100% of current SNX holders are sitting on losses, which paradoxically signals a potential bottom. Historically, such capitulation phases have marked exhaustion in selling pressure, making it less likely that prices will dive below this long-term threshold.
