SPX6900: Is $0.56 within reach for SPX? Assessing key levels
Risk appetite recovered while buy pressure to price turned positive.
SPX6900 [SPX] has traded within a narrow range since it recovered from a $0.22 decline. With memecoins recovering across the board, SPX6900 experienced strong bullish momentum.
SPX successfully held the $0.3 support level and climbed to a two-week high of $0.36 before slightly retracing. At press time, the memecoin traded at $0.332, up 8.23% on the daily charts.
Over the same period, its trading volume rose 129% to $24 million, while its market capitalization increased to above $300 million.
SPX6900 risk appetite hits a 2-week high
As the market rebounded, investors rushed into the Futures market to take strategic positions. According to CoinGlass, SPX’s Open Interest rose 13% to a three-week high of 27 million.
At the same time, derivatives volume surged 123% to $75 million, reflecting increased participation for the Futures positions.
When OI and volume rise together, it indicates increased capital flows into Futures, with traders taking either short or long positions. In fact, over $23.4 million flowed into the market.
Meanwhile, the memecoin’s Long/Short Ratio is 1.52, with longs commanding 60% of the market compared to 39% for shorts.
When longs dominate the market, it suggests that most traders are bullish and have taken positions anticipating higher prices.
Is demand enough for SPX to clear recent losses?
In addition to rising risk appetite, buyers entered the market to accumulate after SPX reclaimed $0.31 levels. As a result, Buy Volume to Price Pressure rose to 47, a significant jump from 9.
With VPO2 rising to the near-bullish zone, this suggests rising buyer dominance. Equally, the memecoin’s accumulation rose to 1.2 million before falling to 403k at press time.
A rising positive pressure, supported by a high accumulation rate, has historically boosted an asset’s upside momentum, often a precursor to higher prices.
In fact, the memecoin exceeded its short-term moving averages (MA9 and MA21), indicating strong short-term upside momentum.
Likewise, SPX6900’s Relative Vigor Index (RVGI) rose to 0.047 after making a bullish crossover, further validating the trend’s strength.
When these momentum indicators rise in tandem to such elevated levels, they signal a greater likelihood that the prevailing trend will continue.
If demand in the Futures market holds while accumulating addresses remain active, SPX could reclaim $0.40. In doing so, the memecoin will target $0.56, the level at which the uptrend previously collapsed.
On the other side, if the futures bubble bursts again, we could see the memecoin pull back to $0.28.
Final Summary
- SPX6900 [SPX] defended $0.3, hiking to $0.36 before slightly retracing to $0.33 at press time.
- SPX6900 rebounded as risk appetite recovered, while price pressure turned positive.
