SPX6900 drops 16% in 24 hours, but is this the start of a new rally?

• SPX has recorded a major market loss, and a further drop may still be underway.
• However, this decline might also be temporary — an ongoing accumulation phase.

SPX6900 [SPX] has trended downward in the last 24 hours, dropping 16%. But using the 1-month chart, this drop appears to be a corrective move, especially when compared to the 106% gain recorded over the same period.

Chart analysis paints a clear picture—SPX may decline further before staging a strong rally. AMBCrypto outlines how this could unfold.

Why support zone could be the turning point

SPX’s price action indicated that the asset had entered a key support zone at press time—a zone that has previously acted as a catalyst.

This ascending support line has triggered rallies on three separate occasions, each followed by major price surges.

Source: Trading View

When price revisits a support level multiple times, a breakdown often follows. This implies that if SPX fails to rally from this point, further downside is likely before any significant rebound.

If SPX declines again, there are three key levels to watch: $1.30, $1.22, and $0.91. These represent potential reversal zones, depending on buying momentum at each level.

AMBCrypto also analyzed additional market metrics to gauge the memecoin’s next possible move—and found consensus.

SPX downside risk grows: But here’s the limit

The Bollinger Bands helps determine potential price direction based on interactions with the upper band (resistance), lower band (support), and middle band (support/resistance).

Per the indicator, SPX recently broke below the middle band, which had acted as support, and was now trending lower.

This move suggests the asset may retest the lower band around $1.31—closely aligning with one of the earlier support levels.

Source: TradingvView

Historically, a touch at the lower band has led to a rally—SPX may follow that trend.

Liquidity inflow also supports a near-term decline. The Money Flow Index (MFI), at 57.02, showed a downward trend in inflow. This suggested that SPX could fall further, at least to the lower Bollinger Band level.

However, despite the decline, the MFI remained within the bullish region—between 50 and 80—indicating that buying pressure could return at any moment.

SPX drops sharply, but is it just a correction?

Sentiment in the derivatives market remained bullish, even with the recent price drop.

At press time, the Open Interest Weighted Funding Rate has entered positive territory with a reading of 0.0055%.

Source: CoinGlass

A positive Funding Rate typically indicates that most active contracts are from long traders.

This bullish sentiment comes despite a 23% decline in Open Interest, which has dropped to $127 million—largely due to long liquidations. Still, this suggests that investor conviction in SPX remains strong.