Meme Coin Spx has traded at $1.30 at press, down 22% over the past week, raising concerns about further negative side risk.
Technical indicators suggest that capital is flowing out of the market, suggesting that tokens could face a further sharp decline.
SPX dips as traders reduce exposure
SPX/USD 1-Day Chart measurements show stable dips in the token’s Smart Money Index (SMI) since August 10th. At the time of writing, it is at 2.16.
Want more token insights like this? Sign up for Editor Harsh Notariya’s daily crypto newsletter.
Smart money refers to experienced investors and institutions such as hedge funds, venture capitalists, and professional traders who are thought to have better insights than the average retail investor.
SMI tracks the behavior of these investors by analyzing price movements during the day. Specifically, it measures sales in the morning (when retailers control it) and sales in the afternoon (when institutions are more active).
The rising SMI indicates that smart money is accumulating assets. Meanwhile, when this indicator drops, the main owner of the asset is distributing the token.
This indicates that SPX could face an even more sharp decline if these investors continue to sell.
Furthermore, SPX’s parabolic halt and reverse (SAR) currently form dynamic resistance of $1.93 above the price, lending credit to the bearish outlook mentioned above.
Parabolic SAR indicators identify directions and reversals of potential trends in assets. The market is on the upward trend when that dot is placed under the asset price. It shows that the asset is witnessing bullish momentum, and if purchases continue, its prices could continue to rise.
On the other hand, when dots exceed the price of the asset, sales pressure is dominant. Traders often interpret this as a sales signal.
SPX can be slid to $1.19 if sales continue
The SPX trades at $1.30 at press and hangs above the support formed at $1.27. As the decline deepens, the support floor could fall to $1.19.
Conversely, a surge in accumulation could rebound to $1.51.
Is the post over-over or waiting for the SPX6900 (SPX) meeting? It first appeared in Beincrypto.
