SPX Memecoin Plummets 11% Amid Sustained Selling Pressure

SPX, a memecoin, has experienced a significant downturn, with an approximate 11% loss. This decline is attributed to sustained selling in both the spot and derivative markets, particularly over the past 24 hours. The bearish trend is evident in the Open Interest (OI) Weighted Funding Rate, which has remained negative since the 17th of June. This metric indicates that most unsettled contracts are from short traders selling the asset, confirming bearish sentiment in the derivative market.

Despite the drop in Open Interest, currently down 10% to $117 million, implying lower liquidity, sellers have held their position in the market. This suggests that the selling pressure may soon ease, and a bounce back could be imminent. An analysis of SPX’s price movement on the 4-hour chart reveals that the asset is trading within a bullish flag pattern and is currently in a consolidation phase. Typically, a breakout from this phase leads to a significant rally. The bounce to the upside could occur soon, as the price currently rests on a minor support level within the channel at $1.29. However, if this level fails to hold, SPX could fall to the lower boundary of the channel—where it may stage a major rebound.

Spot market activity indicates that the current support level—where SPX has made a slight rebound—may soon be breached. At the time of analysis, over $536,000 worth of SPX had been sold, adding further downward pressure and threatening a potential upward move. This action comes amid declining confidence in the memecoin, as traders attempt to secure profits or minimize losses. This is evident in the simultaneous sell-off and falling price. If this trend continues, SPX is likely to retest the channel’s support level—where a major rally could follow.

Market analysis shows that while downward pressure persists, SPX has strong long-term rally potential. Derivative metrics confirm SPX bearish dominance, with a notable bearish trend over the past few days. However, the weakening momentum suggests that selling pressure may soon ease, and a bounce back could be imminent. The bullish flag pattern on the 4-hour chart indicates that a breakout from this phase could lead to a significant rally. The current support level at $1.29 is crucial, as a failure to hold this level could result in a fall to the lower boundary of the channel, where a major rebound may occur.