The meme cryptocurrency has shown limited price action recently, struggling to rise above the key resistance level of $1.20. The lack of significant volatility has kept the token range-bound, with the price hovering around $1.16.
However, the emergence of new investors may fuel a potential breakout, bringing renewed optimism to the $SPX price action.
SPX investors are showing mixed signals.
The SPX6900 adoption rate reached a two-month high of 25%. This adoption rate refers to the percentage of new addresses making their first transaction relative to all active addresses on a given day.
The increase in new investor activity is a strong bullish signal, indicating growing interest in the meme coin.
This surge in adoption is a key indicator of SPX6900's growth potential. New owners typically bring fresh capital to the market, which can help drive the price higher.
As the number of new addresses increases, investor confidence may follow, pushing SPX closer to a breakout.
SPX adoption rate.
Despite the positive sentiment driven by the new owners, there are signs that SPX6900 may face challenges. Active deposits, which track the amount of SPX being transferred to exchanges, have increased in recent days.
This indicates that investors are likely preparing to sell their holdings, which could put downward pressure on the token.
The increasing deposits are contributing to the current consolidation in the SPX6900 price, as selling pressure counteracts the positive sentiment from new investors. If the increasing deposits trend continues, the price range may remain restricted.
Active deposits for SPX.
SPX price aims for breakout
The price of SPX6900 has risen 9% over the past 24 hours, adding to a 17% gain this week. However, the meme coin continues to struggle at the $1.20 resistance level, a level it has failed to breach for several days.
With the pair trading at $1.16, continued selling pressure may prevent a break above this level in the short term.
The recent formation of a golden cross with the exponential moving averages (EMAs) toward the end of May indicates bullish potential for SPX. However, this positive outlook is tempered by a rise in active deposits.
As long as the selling pressure persists, SPX is likely to remain stuck between the $1.20 resistance level and the $1.00 support level, preventing any significant upward movement.
SPX price analysis.
If the current selling trend slows, SPX6900 may finally break the $1.20 resistance level. This would open the door for the meme coin to move towards $1.40, invalidating the bearish outlook and restoring investor confidence.
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