SNX Price Slumps to $1.32 as Profit-Taking and Weak Bulls Fuel Bearish Breakdown
Introduction: A Stark Reversal for Synthetix
The Synthetix (SNX) token experienced a sharp downturn on October 24, 2025, with its price slumping to $1.32. This 9.3% decline in the past 24 hours starkly contrasted with the wider crypto market, which posted a gain of 0.94% over the same period. The drop marks a significant bearish breakdown, eroding the impressive recovery SNX had mounted after the market crash on October 10, which saw it rally to a high of $2.58. This recent weakness relative to market leader Bitcoin, combined with a nearly 30% recede in daily trading volume as reported by CoinMarketCap, has raised concerns among holders and bullish traders about the token's near-term trajectory. The price action underscores a market dominated by profit-taking and a failure of bulls to maintain momentum, pushing SNX toward a critical demand zone that will test its underlying strength.
Profit-Taking Activity Forces SNX to Retrace Its Rally
The recent price appreciation of SNX was partly fueled by a $1 million trading competition announced in September, which increased demand for the token as participants sought to qualify. This demand helped Synthetix stage a strong rebound even after the liquidation event on October 10. However, this upward move has now been undercut by significant profit-taking activity.
Data from Santiment revealed a large amount of dormant token movement over the past ten days, coinciding with a high percentage of the SNX supply being in profit. This combination, alongside an uptick in dormant circulation, serves as clear evidence of investors capitalizing on gains made during the recovery rally. The daily active address count has also tanked compared to the period following the October 10 crash, and the mean coin age was unable to climb higher. Together, these on-chain metrics paint a picture of a lack of accumulation from existing SNX holders and renewed selling pressure, throwing doubt on the token's immediate potential for recovery.
Technical Analysis Points to Bearish Structure and Key Levels
A look at the SNX/USDT 1-day chart on TradingView reveals a bearish internal structure as SNX broke down beneath the previous week’s swing low at $1.32. At the time of analysis, the token was trading just above the 78.6% Fibonacci retracement level at $1.26.
The technical indicators present a mixed but leaning bearish signal. The Chaikin Money Flow (CMF) stood at -0.13, indicating heavy capital outflow from the SNX market and suggesting seller dominance is likely to drive prices lower. While the Directional Movement Index (DMI) showed that the Synthetix token continued to trend bullishly on a broader scale, the bearish CMF and the breakdown in price structure are considered to overrule this positive signal in the short term.
The most critical area for SNX bulls to defend is now clearly defined. Just below the current trading level lies the $1-$1.2 area, which is identified as a demand zone that previously sparked the most recent impulse move higher to $2.58. For any hope of a bullish reversal, bulls must not only defend this zone but also drive a price bounce beyond $1.83 to flip the 1-day timeframe’s structure bullishly.
AWS Outage Highlights Centralized Risks and Impacts Liquidity
External factors have also contributed to the selling pressure. On Monday, October 20, an Amazon Web Services (AWS) outage affected major crypto platforms, including Coinbase and its Layer 2 network, Base. This event had a tangible impact on SNX’s trading activity and liquidity, dragging prices lower.
The incident served as a stark reminder of the crypto ecosystem's dependencies on centralized infrastructure. Such disruptions can feed into market uncertainty and trigger sell-offs, as seen with SNX. The outage underscored a systemic risk that can temporarily impair market function and investor confidence, adding another layer of complexity to asset price movements beyond pure technicals or fundamentals.
SNX Underperforms in a Mixed Broader Market Context
The weakness in SNX is particularly notable given its performance relative to the broader digital asset market. While SNX fell 9.3%, the general crypto market cap increased by 0.94%. This underperformance suggests that SNX-specific factors, namely the profit-taking and exhausted bulls, are driving its decline rather than a sector-wide downturn.
Bitcoin, the market bellwether, managed to defend the $108k support level in the short term, with its bulls wrestling with the supply around $110k in an attempt to drive a rally. The fact that SNX could not capitalize on this relative stability in the flagship cryptocurrency further highlights its current short-term weakness.
Conclusion: A Critical Juncture for Synthetix
The slump of SNX to $1.32 represents a critical test for the token. Driven by profit-taking from its recent recovery and a lack of bullish conviction, the price has broken key support levels and is approaching a historically significant demand zone between $1 and $1.2. The bearish technical structure and negative capital flows outweigh any lingering bullish trend signals.
For traders and investors, the immediate focus should be squarely on whether the bulls can muster the strength to defend the $1-$1.2 demand zone. A failure to hold this level could open the door for further declines. Conversely, a strong bounce from this area, accompanied by a surge in volume and positive capital flow, would be the first sign of buyer resurgence.
Beyond short-term price action, readers should monitor SNX's on-chain metrics for signs of holder accumulation and a decrease in dormant circulation. Additionally, watching for resolutions to broader market uncertainties and any new fundamental developments within the Synthetix ecosystem will be key to gauging whether this breakdown is a temporary setback or the start of a more prolonged bearish phase.
Disclaimer: This analysis is based on current market data and should not be considered financial advice.