- Synthetix bears fighting back control, down 17% on the week.
- Compound sees a dead cat bounce? 4H chart leans bearish.
- Litecoin buyers return with conviction, more gains likely?
Decentralized finance (DeFi) tokens are trying to catch up with the positive turnaround seen across the crypto board in the second half of this week. However, Synthetix, Compound, Litecoin have failed to benefit from the renewed buying wave, emerging as the main laggards among the top 50 widely traded digital assets.
Synthetix (SNX) eroded 17% on a weekly basis. Compound (COMP) and Litecoin (LTC) lost over 13% and 12% respectively of their value.
Synthetix: Saturday’s spinning top awaits confirmation
Synthetix (SNX/USD) is the worst performers from the top 50 dominantly traded cryptocurrencies this week, having lost 17% of its value. The No. 43 coin has returned to the red zone following a temporary reversal seen on Saturday. The price currently trades in a narrow range around $4.20, awaiting fresh trading impetus.
SNX/USD: Daily chart
The spot extends its bearish consolidation into the third straight session this Sunday. The coin witnessed a sharp sell-off to a three-week low of $3.1850 reached last Thursday following a rising channel breakdown on the daily chart.
The bulls have managed to recapture the horizontal 50-daily moving average (DMA) at $4.023 and now holds onto it, keeping the downside in check. A breach of the last could once again bring the 200-DMA support at $3.452 in play. The 14-day Relative Strength Index (RSI) points south below the midline, keeping the sellers hopeful.
All eyes remain on Sunday’s closing after Saturday’s spinning top, as the bulls await a confirmation for a bullish reversal. The immediate resistance is seen at $4.60, the confluence of the 21 and 100-DMAs.
Compound: Poised for additional downside
Compound (COMP/USD) is looking to build on Saturday’s recovery from near two-week lows of $112.01. Despite the bounce, the path of least resistance appears to the downside amid a bearish technical set up on the four-hour chart. The No. 44 coin remains on track to incur a 13% weekly loss, last seen trading at $107.60.
COMP/USD: 4-hour chart
The recent slide followed by the consolidation has carved out a bull flag formation on the four-hour chart. The pattern would get validated on a break below the rising trendline support at $102.12 on a four-hourly closing basis.
A bearish breakdown could trigger a sharp drop towards November lows of $81.01. At the moment, the price is battling the 200-simple moving average (SMA). Bearish crossover as well as RSI suggest that there is further scope of declines. The RSI trades flatlined around 44.87 while 21-SMA is on the verge of piercing the 200-SMA from above. Alternatively, a sustained break above the trendline resistance at $109.88 could expose the next significant barrier at $116.94, which the convergence of the 50 and 100-SMAs.
Litecoin: Bulls insist but upside appears limited
Litecoin (LTC/USD) seems to have found some weekend love, extending its recovery mode into the second straight day. The bulls take cues from the upbeat sentiment seen across the crypto space, still loses 12% on a weekly basis.
LTC/USD: Daily chart
The eight most favorite coin battles the 21-daily moving average (DMA) at $73.26, eyeing a close above the latter on a daily basis, in order to confirm a bullish reversal. The coin hit eleven-day lows at $64.60 earlier this week. The 14-day RSI point higher within the bullish territory, indicating additional upside. Meanwhile, the price trades above all the major averages.
The bulls look to conquer the $80 barrier on its road to recovery. On the flip side, the spot could challenge the multi-day lows. Further south, the bullish 50-DMA at $62.10 could be the level to beat for the bears.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.