The SPX6900 token has been in a strong uptrend since March, making it one of the top gainers in crypto.
In recent months, the SPX6900 token, commonly referred to by its ticker SPX, has captivated the attention of investors and crypto enthusiasts alike. It experienced a significant price jump, reaching a remarkable high of $1.222 on May 29. This surge represents a staggering increase of nearly 350% from its March lows, elevating its market valuation to over $1 billion. With this impressive performance, SPX6900 has secured its position as the eighth-largest meme coin in the ever-evolving landscape of cryptocurrency.
A substantial driver behind the token’s ascent has been the phenomenon of fear of missing out (FOMO) among investors. This sentiment has translated into a notable increase in the number of SPX holders, growing from approximately 29,000 at the start of January to a robust 40,000 by late May. The buzz surrounding SPX6900 is not only palpable in investment circles but also reflects a rising trend in social media mentions, underscoring the token’s growing popularity.
While SPX has successfully flipped the critical resistance level at $1, several indicators suggest that the token may encounter significant headwinds in the near future. On the technical side, Santiment’s data reveals a worrisome trend: the supply of SPX tokens available on exchanges has risen sharply this month. Currently, there are about 87 million tokens on exchanges, compared to a mere 41 million at the start of the year. Additionally, Nansen reports an even higher figure, highlighting a total exchange supply of 141 million tokens, marking a 6.5% increase over the past month.
This increase in tokens on exchanges usually hints that investors are beginning to cash out and take profits after an impressive rally, a classic move in the crypto market following a parabolic rise.
In addition to rising exchange supplies, SPX may be facing more adverse pressure from whale activity. Investors who hold between 1 million and 10 million tokens have reduced their total ownership from 330 million SPX6900 coins to 300 million since last month. Furthermore, entities possessing between 100 million and 1 billion tokens have decreased their holdings to 148 million from the previous month’s 163 million. This selling activity among larger holders could suggest skepticism about the token’s continued upward momentum.
Further reinforcing this cautious sentiment, additional data from Nansen indicates that “smart money” investors—those with a history of successful investments—are holding only 4.6 million SPX coins, marking a 10% decline over the past month. This significant drop in their holdings highlights a bearish outlook among seasoned investors, hinting that many may be anticipating further downward movement in the token’s price.
SPX Price Technical Analysis
From a technical perspective, another red flag for SPX is the formation of a rising wedge pattern on the 12-hour chart. This pattern indicates a potential weakening of price momentum and could lead to a bearish breakdown. The lower trendline connects some critical swing lows since May 7, while the upper trendline traces the highest swings since April 14. As these two lines converge, a breakdown could be imminent, triggering a sell-off.
If such a breakdown occurs, crucial support levels to watch will be around $1.00, with the next significant level located at $0.6383, the lowest swing point noted on May 18. Investors keeping a close watch on SPX6900 should stay alert for these key levels as they could signify crucial turning points in the token’s price action.
