The SPX recorded a sharp decline, with major indices in both the derivatives and spot markets turning negative.
SPX chart analysis shows that the price may be showing signs of recovery.
Memecoin SPX6900 [SPX] has undergone the biggest correction in the market, losing about 11% of its value.
Market analysis shows that traders in the spot and derivatives markets played a leading role in this decline, due to the continuous sell-off — especially in the last 24 hours.
TinTucBitcoin analysis shows that although the downward pressure remains, SPX still has the ability to bounce back very strongly in the long-term Bullish trend.
Derivatives confirm SPX's bearish advantage
In recent days, the clear negative trend when analyzing Open Interest (OI) and average funding rate has revealed a clear bearish signal.
At the time of writing, the Average Funding Rate of OI has remained negative since June 17 — the last time it was negative was around mid-April, between the 15th and 18th.
Source: CoinGlass
The sharp decline in this index confirms the bearish sentiment in the derivatives market, as the majority of open contracts are short-sold.
This shows that, although Open Interest has decreased by 10% to 117 million USD, which means lower liquidity, sellers still maintain their position in the market.
Ascending flag pattern emerges — but support needs to hold
At the time of analysis, SPX's trading volume had dropped 41.45% over the past 24 hours to $270.92 million. The simultaneous decline in volume and price suggests that the bullish momentum is weakening.
This could ease selling pressure in the short term and open up the possibility of an upcoming price recovery.
The 4-hour chart analysis shows that SPX is moving in a bullish flag pattern. Currently, the price is in an accumulation phase, expected to bounce sharply after breaking above the minor resistance at $1.29.
Source: Trading View
Typically, when the price breaks out of this bull flag pattern, it creates a significant rally. Currently, the SPX is in an accumulation phase, ready to bounce higher when it breaks above the minor support level at $1.29.
However, if this support level fails, the price is likely to drop to the bottom of the channel, returning to lower levels and facilitating a strong recovery afterwards.
Negative spot market, pressure on
Spot market activity suggests that current support — where the SPX has just shown signs of a slight rebound — may be about to break.
At the time of analysis, more than $536,000 worth of SPX had been sold, adding further downward pressure and raising concerns about a possible rebound.
Source: CoinGlass
The move comes amid a sharp drop in sentiment in memecoin as traders take profits or cut losses on short positions.
This is evident in the massive sell-off and continued price decline. If this trend continues, SPX is likely to retest the channel support, creating an opportunity for a major rally to follow.
Source: https://tintucbitcoin.com/spx-giam-11-du-kien-phuc-hoi-the-nao/
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