SPX Meme Coin Sees 81% Surge in Short Positions Amid 30% Crash

Investors have been rapidly opening short positions on the SPX6900 (SPX) meme coin, despite a 30% crash in its value. This unusual behavior comes as the broader crypto market experiences a significant downturn, with meme coins being particularly hard hit. Typically, such crashes present opportunities for traders to enter long positions if the downtrend shows signs of exhaustion. However, SPX has seen a surge in short positions, indicating that traders anticipate further declines.

According to data, SPX has the largest number of newly opened short positions in the last 24 hours, with open interest rising by 81%. This surge in short positions suggests that traders are betting heavily on the meme coin's price continuing to fall. The token, which has a market cap of $256 million, traded at $0.27 after a 23% drop in 24 hours. This decline aligns with analysts' predictions that SPX is in a "free fall."

One of the key factors driving the negative sentiment around SPX is the significant losses incurred by prominent traders. Murad, a top crypto analyst and trader, suffered a $3.3 million loss on his SPX holdings after the meme coin's price fell by 30%. Murad had been a major promoter of SPX, initially predicting that it would surpass Dogecoin in market cap. However, the price drop resulted in a 30% loss for Murad, who holds 29.96 million tokens valued at approximately $7.9 million. Such steep losses are fueling the negative market sentiment, leading to a high demand for short positions.

The bearish momentum around SPX is growing stronger, as indicated by the oversold Relative Strength Index (RSI) and the lengthening of the Awesome Oscillator bars. As traders continue to record losses, it is likely to reduce buyer interest and push the price lower. The SPX meme token has posted the most decline in the last 24 hours, and with rising short positions showing low confidence in a price recovery, the price may drop below $1 in the near term.

In summary, the rapid increase in short positions on the SPX meme coin, despite a 30% crash, is driven by traders' anticipation of further declines and the significant losses incurred by prominent traders. The bearish momentum and negative market