Why did SPK fall?
On August 15, SPK suffered a dramatic drop of -443% in a single day, reflecting enormous intraday volatility. In a week, it had already accumulated a drop of more than -2,600%, although it still maintains a very high annual return (+71,720%).
This correction followed a phase of euphoria driven by an airdrop (“Ignition phase”) and strong inflows from institutional entities, such as “whales,” in addition to public support from the CEO of Coinbase.
Despite substantial growth in TVL and staking—reaching $155 million USD in staking and TVL between $8B-$9B—the selling pressure generated by airdrop holders (who sold to realize profits) led to a strong correction.
Can SPK recover?
Yes, although with important warnings ⚠️:
Positive reasons:
Solid fundamentals: Spark is a DeFi platform with high locked capital, increasing yield, and growing adoption across multiple networks.
Relevant endorsements: The approval from the CEO of Coinbase generated a strong technical rally: a bearish pattern (“descending triangle”) was broken, with MACD and capital flow pointing upward.
Favorable technical momentum: SPK surpassed Fibonacci levels, remains above its key moving averages, and shows structures like an ascending wedge that suggest continuation potential. Analysts point to possible increases towards $0.18–$0.20.
Risks to consider:
Increasing supply: Only 10–17% of the 10 billion tokens are in circulation. The remaining 65% is allocated for farming over 10 years, which implies a token issuance that could maintain downward pressure if demand does not grow quickly.
Extreme volatility: SPK has shown abrupt movements, which can affect the confidence of less risk-tolerant investors.
Upcoming targets and resistance: The level of $0.17–$0.18 is key. A sustained breakout would open the door to new highs; if not, we may see pullbacks towards $0.07–$0.08.