SPX recorded significant losses in the market, and the risk of a deeper decline still exists.
However, this decrease may only be temporary — the accumulation phase is still ongoing.
SPX Price Trend Analysis: Adjustment phase or new downtrend?
SPX6900 [SPX] has dropped sharply by 16% in the past 24 hours. However, on a 1-month timeframe, this is seen as an adjustment phase, especially when compared to SPX's 106% increase during the same period.
The price chart clearly reflects the trend; SPX may continue to adjust before a strong recovery occurs. Below is the expert opinion on this scenario.
Important support zone: The key to reversing the trend?
Currently, SPX has returned to the key support zone — which previously served as a catalyst for earlier bullish movements in the cryptocurrency market.
This upward support line has triggered three bullish waves, each bringing about a breakout growth wave.
Source: Trading View
Each time the SPX price tests the support zone, the risk of a breakdown increases. If SPX does not bounce back from this zone, a deeper decline may occur before the cryptocurrency market recovers.
Three price levels to note as the risk of a deeper decline continues: 1.30 USD, 1.22 USD, and 0.91 USD. These are potential reversal points, depending on buying pressure at each threshold.
Many other market indicators are also being utilized to assess the next trend of this memecoin, showing consensus on the possibility of a continuing adjustment.
The downside risk of SPX increases: What level is the bottom?
Bollinger Bands is a tool that determines the direction of price movement based on interaction with the upper band (resistance), lower band (support), and middle band (support/resistance).
On this indicator, SPX has broken through the middle band — which was once an important support — and is now continuing a downward trend.
SPX is about to retest the lower band area around 1.31 USD, coinciding with one of the main support zones.
Source: TradingView
SPX has a history of bouncing back strongly each time it touches the lower Bollinger band, and this scenario may continue to recur.
Liquidity sources also reflect a short-term declining trend. The Money Flow Index (MFI) reached 57.02, indicating that inflows are showing signs of weakening. SPX may drop to the lower band, consistent with technical analysis.
However, MFI remains in the bullish zone (from 50 to 80), implying that buying pressure could return at any time to trigger a new bullish wave.
SPX adjusts deeply: Temporary or reversal?
Despite the price decrease, sentiment in the cryptocurrency futures market still leans towards a bullish trend.
The Open Interest Weighted Funding Rate recorded a positive zone, reaching 0.0055%.
Source: CoinGlass
Positive Funding Rate indicates that a large portion of open positions is long, showing optimistic sentiment in the futures market.
Despite Open Interest dropping 23%, down to 127 million USD due to long liquidations, the steadfastness of confidence in SPX within the cryptocurrency market remains prominent.
Source: https://tintucbitcoin.com/spx6900-giam-sau-bull-run-sap-den/
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