SPX6900 Plunges 20% as Crypto Whales Dump Holdings

• SPX6900 dropped 40% from $1.63 peak to $1.04, with a 20% decline in the last 24 hours due to whale profit-taking.

• Price breaks below the 50-day EMA with bearish MACD divergence and RSI falling to 42.99 from overbought levels

SPX6900 is in a big technical correction and witnessed a 20% price drop in the last 24 hours, demonstrating profit taking by whales. According to Santiment data, SPX price witnessed a high whale activity among the most altcoins in recent times and is a top performer in the last few weeks. However, the current big fall is from its recent peak of $1.63, pointing to whales booking a profit.

The price action of the meme token shows all the typical symptoms of exhaustion after a parabolic move that started in early May. The SPX6900 is dropping in price below important support lines, and the current price is close to $1.04 after reaching $1.7 in the middle of June. This is about a 40% fall from the recent peaks. 

Looking at the Exponential Moving Average analysis, the current price has broken below the 50-day EMA level, showcasing possible bearish momentum. However, SPX still has a key support of the psychological level of $1.00 and the 200-day EMA level of $0.831. 

According to CMC data, currently, SPX price is trading at $1.066 with an intraday drop of 20%, showing extreme price correction. The daily trading volume has increased by 62% and currently stands at $104.75.

What’s Next For SPX6900 Price?

The MACD indicator shows bearish divergence that is alarming, as the MACD line (-0.06112440) is crossing below the signal line, and the histogram indicates the growth of negative momentum. This technical configuration is usually followed by an additional downward trend. 

The technical chart shows the extreme selling pressure, which is indicated by the RSI indicator, and it is now at 42.99, as compared to the overbought levels of above 70 in the peak rally. The fact that the RSI has fallen below 50 indicates that bears have taken over the short-term trend

Volume analysis indicates increased seller presence, as observed in recent trading sessions, where the volume has been high despite the falling price. This trend indicates institutional or whale selling and not retail panic selling. The former support areas of the token at the price of $1.00 and $0.83 can be the downside targets in case the current correction persists.

In the bigger picture, the 250% rally of SPX6900 between May lows and June highs was not sustainable, and the correction that is currently in progress seems to be healthy. The token is now being traded at 40% lower than its recent high, which is in line with the correction trends of meme coins. 

The most important levels of resistance to monitor are $1.06 and $1.40, whereas the support is at $1.00 and $0.83. The traders are advised to observe the ability of the price to sustain above $0.80 to avoid additional technical breakdown to the lower support levels.

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