SPX6900, an Ethereum-powered cryptographic token, has experienced a steep 19% drop in value, tumbling to $1.30 just two days after hitting its all-time high of $1.61. This sharp decline has also reduced its market capitalization from a peak of $1.48 billion to around $1.20 billion. The question now looms—what’s next for SPX traders?
Currently hovering near the $1.30 mark, the cryptocurrency appears to be eyeing the critical $1.24 support level. Supposing this zone can hold firm, it might serve as a springboard for a possible recovery toward $1.55, especially with rising trading volumes hinting at renewed investor interest.
Yet, should this support falter, the token could slide further, targeting the Fair Value Gap (FVG) between $1.13 and $0.98. This range may attract dip-buyers as it aligns with a broader market imbalance waiting to be filled. Adding weight to this support zone is the 20-day moving average, nestled within the FVG at $1.04, which coincides with the 50% Fibonacci retracement level. This technical alignment may bolster confidence in the $1.00-$1.13 range as a crucial safety net.
Bears Tighten Their Grip on SPX6900
As reflected in key technical indicators, the short-term outlook for SPX6900 leans bearish. For instance, the Relative Strength Index (RSI), currently at 65.50, has dipped below the overbought region, signaling that bearish momentum is quietly gaining traction. Meanwhile, the MACD indicator is painting a similarly cautious picture—with its MACD line, positioned at 0.1812, curving downward, while the shrinking green histogram bars approach the zero line, hinting at waning bullish sentiment.
On-chain metrics further underscore the cautious mood. Data from CoinGlass reveals a 27.13% drop in Open Interest, falling to $44.22 million from a peak of $60.68 million in just two days. This decline suggests cooling investor confidence and diminishing buying pressure, which could leave the market vulnerable to further downside.
Bullish Momentum or Further Decline? The $1.00 Question
With SPX facing a potential correction, the $1.00 mark—reinforced by Fibonacci retracement and technical indicators—emerges as a likely zone for price stabilization. Yet, markets are unpredictable. A surge in positive sentiment or a shift in broader market dynamics could send the cryptocurrency soaring back toward $1.55. Breaching this level would set the stage for the token to venture into uncharted territory beyond its $1.61 all-time high.
Also Read: XRP Price May Lose $2 Support This Week, But Here’s a Catch
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