SPX6900 has traded within a minimum ascending channel since it bounced back from a slip below $0.3. With the bullish structure still intact, the memecoin bounced back, holding the $0.35 level, and hiked to a high of $0.38.
In doing so, SPX flipped its short-term moving averages, the 20- and 50-EMAs, indicating strengthening upside momentum. As of this writing, SPX6900 [SPX] traded at $0.35, up 10.5% on the daily charts.
Likewise, the volume rose 105% to $22 million, reflecting increased trading activity as investors stepped in to anticipate further gains.
SPX6900 sees renewed speculative demand
The broader crypto market rebounded on the 4th and the 5th of March, recording substantial gains. Amid this market recovery, AMBCrypto observed that SPX6900 made considerable gains as speculators returned to the market.
According to CoinGlass data, the memecoin’s Open Interest climbed 15% to $27 million, while Derivatives Volume rose 95% to $94 million.
Often, when OI and volume rise in tandem, it signals increased participation and capital flows into Futures.
Source: CoinGlass
In fact, the memecoin saw over $28 million flow into strategic positions. Meanwhile, the memecoin’s Long/Short Ratio jumped to 1.02, with Binance traders leading.
The ratio above 1 across exchanges suggests that most participants are bullish and expect higher prices.
Buyers defy market trend, defend higher levels
On the Spot side, market demand recovered – the Demand Index jumped to 0.13, indicating sustained buying pressure.
With the Demand Index holding within the positive zone for three consecutive days, it showed that buyers stepped in and bought the dip. Thus, even after the markets slipped, the memecoin avoided any panic sell-off.
Source: TradingView
Instead, buyers have dominated the market, as evidenced by the Seller Buyer Dominance indicator. So, buyers have outpaced sellers for five consecutive days, and currently, buyer dominance sits at 17 million.
Historically, a sustained period of accumulation has accelerated upside momentum, leading to higher prices.
Can the momentum hold?
SPX6900 has shown strong upside momentum since the memecoin rebounded from $0.27 a week ago, as evidenced by the Relative Strength Index (RSI).
The memecoin’s RSI has remained above its signal line for seven consecutive days, hiking to 57 at press time. At the current levels, the RSI holds within a bullish zone, indicating strong demand.
Source: TradingView
Although sellers remain relatively active, buyers have shown greater determination to hold the market consistently at higher levels. With demand remaining consistent, the memecoin could make further gains if it holds.
The continuation of the prevailing sentiment could see SPX flip $0.4 and target EMA200 at $0.49. However, if the demand turns out to be short-term speculation, the memecoin will retrace to $0.30.
Final Summary
- SPX6900 bounced back from a $0.32 slip, held $0.35, and touched a high of $0.38
- SPX saw renewed speculative demand as the market signaled recovery, with buyers consistently defending higher levels.
