- SPX has recorded a significant drop, with key indicators in both the derivative and spot markets turning negative.
- Chart analysis of SPX hints at a possible price rebound.
Memecoin SPX6900 [SPX] has experienced the most significant downturn in the market, with an approximate 11% loss.
Market analysis shows that spot and derivative traders have played a major role in this decline, following sustained selling—particularly over the past 24 hours.
AMBCrypto’s analysis shows that while downward pressure persists, SPX has strong long-term rally potential.
Derivative metrics confirm SPX bearish dominance
There has been a notable bearish trend over the past few days, as a recent analysis of the Open Interest (OI) Weighted Funding Rate revealed.
As of writing, the OI Weighted Funding Rate has remained negative since the 17th of June—a move last observed between the 15th and the 18th of April.
Source: CoinGlass
A considerable decline in this metric confirms bearish sentiment in the derivative market, as most unsettled contracts are from short traders selling the asset.
This suggests that despite the drop in Open Interest—currently down 10% to $117 million, implying lower liquidity—sellers have held their position in the market.
Bullish flag forms—but support must hold
At press time, SPX’s trading volume had dropped by 41.45% in the past 24 hours to $270.92 million. A simultaneous decline in both trading volume and price indicates weakening momentum.
This weakening suggests that selling pressure may soon ease, and a bounce back could be imminent.
An analysis of SPX’s price movement on the 4-hour chart reveals that the asset is trading within a bullish flag pattern and is currently in a consolidation phase.
Source: Trading View
Typically, a breakout from this phase leads to a significant rally. The bounce to the upside could occur soon, as the price currently rests on a minor support level within the channel at $1.29.
However, if this level fails to hold, SPX could fall to the lower boundary of the channel—where it may stage a major rebound.
Traders attempt to exit, pressure mounts
Spot market activity indicates that the current support level—where SPX has made a slight rebound—may soon be breached.
At the time of analysis, over $536,000 worth of SPX had been sold, adding further downward pressure and threatening a potential upward move.
Source: CoinGlass
This action comes amid declining confidence in the memecoin, as traders attempt to secure profits or minimize losses.
This is evident in the simultaneous sell-off and falling price. If this trend continues, SPX is likely to retest the channel’s support level—where a major rally could follow.
