SPX6900 (SPX) Soars 15%, Leading the Market Despite Selling Short

SPX continued its upward momentum, climbing another 15% on Monday. This double-digit price increase made it the cryptocurrency with the strongest gain in the pa...

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SPX continued its upward momentum, climbing another 15% on Monday. This double-digit price increase made it the cryptocurrency with the strongest gain in the past 24 hours.

However, the growing bearish sentiment surrounding the cryptocurrency raises concerns about a possible price correction in the coming days.

SPX6900 Explodes Short Bets

Since January 1, the SPX6900 price has had a string of impressive achievements, setting new highs every day. On January 5, the Token price climbed to a new peak of $1.56. With a 15% gain over the past 24 hours, SPX appears capable of continuing its upward momentum.

However, the bearish sentiment towards this altcoin could create a headwind in the short term. Despite the price increase, SPX futures traders have initiated short selling bets, predicting prices will fall. This is shown by its Long/Short Ratio, which is currently 0.98.

The Long/Short ratio of an asset relative to the number of long (long) and short (short) positions in the market. With SPX, when the value is below one, there are more traders betting on the price falling than rising. If short sellers continue to dominate, this could put downward pressure on prices.

Notably, SPX’s weighted sentiment, which represents overall positive or negative sentiment, also confirms this growing bearish trend. As of now, this index is -0.84.

SPX Weighted Sentiment — SPX Weighted Emotions. Source: Santiment

Values below one indicate a negative bias in sentiment surrounding the asset. This means there are more negative comments than positive ones, which can affect asset prices.

SPX Price Prediction: Correction or New High?

On the daily chart, SPX is overbought, as reflected by its Relative Strength Index (RSI) at 79.33 at the moment.

The RSI measures the oversold and overbought market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating the asset is overbought and is likely to correct. Conversely, a value below 30 shows that the asset is oversold and is likely to recover.

At 79.33, SPX’s RSI shows it is overbought, suggesting a possible price correction or reversal. If this happens, its price could drop to $1.18.