SPX6900 (SPX) price has experienced sharp movements, rising 25% in the last seven days but dropping 15% in the past 24 hours amid a broader meme coin market correction.
The correction follows a period of overbought conditions, with technical indicators suggesting potential further downside or a possible reversal if buying momentum returns. The coming days will be crucial in determining whether SPX price can regain its bullish trend or face deeper corrections.
SPX RSI Dropped For Its Lowest Level In 20 Days
SPX Relative Strength Index (RSI) has sharply dropped to 33.4, a significant decline from its 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.
Readings above 70 typically indicate overbought conditions, suggesting a potential for a price pullback, while values below 30 suggest oversold conditions, often signaling the possibility of a rebound. At 33.4, SPX’s RSI hovers just above the oversold threshold, marking its lowest point since December 20.
This steep decline in RSI highlights heavy selling pressure and weakening momentum for SPX. While the current level suggests that bearish sentiment is dominant, it also signals that SPX price may be approaching oversold conditions.
If the RSI drops further or stabilizes near 30, it could create conditions for a price recovery as buying interest might return. However, without a strong shift in market sentiment, SPX price may continue to consolidate or decline in the near term, like other meme coins.
SPX BBTrend Is Declining
SPX BBTrend remains positive at 17.1 despite a steady decline from its recent peak of 38 on January 6. Derived from Bollinger Ba
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Author: Tiago Amaral
