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The SPX6900 (SPX) price has been volatile, up 25% in the past seven days but down 15% in the past 24 hours amid a correction in the broader meme coin market.
The correction comes after a period of overbought conditions, with technical indicators pointing to the possibility of further price declines or a possible reversal if buying momentum returns. The coming days will be key to determine whether SPX price can resume its uptrend or face deeper corrections.
SPX’s RSI fell to its lowest level in 20 days
SPX’s Relative Strength Index (RSI) has plummeted to 33.4, down significantly from the overbought level of 81.4 just three days ago. RSI is a momentum indicator that measures the speed and magnitude of price movements on a scale of 0 to 100.
A reading above 70 typically indicates overbought conditions, suggesting a possible price correction, while a reading below 30 indicates oversold conditions, often signaling a possible recovery. At 33.4, SPX’s RSI is just slightly above the oversold threshold, marking its lowest since December 20.
The sharp decline in RSI highlights strong selling pressure and weakening momentum in SPX. While current levels suggest that bearish sentiment prevails, it also indicates that SPX price may be approaching oversold conditions.
If RSI falls further or stabilizes around 30, it could facilitate a price recovery as buying interest returns. However, without a drastic change in market sentiment, SPX price may continue to stabilize or decline in the short term, like other meme coins.
BBTrend of SPX is decreasing
SPX’s BBTrend remains positive at 17.1 despite a steady decline from its recent high of 38 on January 6. Derived from Bollinger Bands, BBTrend measures the strength and direction of price trends. Positive values indicate bullish momentum, while negative values indicate bearish conditions.
At current levels of 17.1, SPX’s BBTrend shows that while a correction of nearly 15% over the past 24 hours has dampened bullish momentum, the coin still retains a bit of underlying bullish sentiment. However, BBTrend’s steady decline suggests that further downside risks persist unless buying activity increases to stabilize prices.
A continuation of the current trajectory could lead to additional consolidation or correction. However, the recovery in BBTrend could signal a revival of bullish momentum, keeping SPX in the top 10 largest meme coins.
SPX price prediction: Will it adjust by another 48%?
SPX’s EMAs maintain a bullish setup, with the short-term EMAs above the long-term ones. However, the short-term lines are trending down, raising the possibility of a “death cross” — where the short-term EMAs cross below the long-term ones.
This bearish signal could exacerbate the recent correction in SPX price, which resulted in the price testing support at $0.937.
If this key level is lost, the meme coin could face further downside, potentially dropping to $0.819 or even $0.615, marking a significant 48% correction from current levels.
Conversely, renewed enthusiasm for meme coins could give SPX price the boost it needs to reverse its current trend. In such a scenario, the coin could rise to challenge the nearest resistance at $1.64.
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