SPX Surges 17% – Will Whales Drive the Rally to $0.72?

The SPX cryptocurrency has experienced a remarkable 17% increase in value recently, driven by an increase in open interest and significant whale activity. This article explores the factors behind SPX's surge, including whale accumulation and market dynamics, while contemplating the potential for SPX to reach the $0.72 resistance level.

Key Takeaways

Increasing open interest, whale accumulation, and strong support from exponential moving averages are driving bullish sentiment.
If demand persists, SPX may aim for the $0.72 resistance level.
SPX6900 [SPX] has shown a substantial 17% surge in the last 24 hours, coinciding with major institutional investments and significant holders increasing their positions.

SPX6900 has shown a notable increase of 17% in price over the past day, as of the latest updates. This surge comes on the heels of increased activity from institutional players and large holders looking to enhance their positions. Notably, SPX's Open Interest (OI) has risen to $29 million, a level last observed on November 18, indicating that periods of accumulation like this often signal strong bullish price movements. Is SPX on the verge of a repeat of this trend?

SPX Surges 17% as whales Return

Whale Accumulation Fuels the Rally

Recent data from CryptoQuant reveals that whale wallets have consistently been increasing their holdings at the current trading price. The renewed interest from futures whales suggests large investors are preparing for further upward movement, especially since SPX is trading comfortably above a critical support level defined by the Exponential Moving Average.

SPX whale activity Source: CryptoQuant

Adding to the bullish sentiment, the SPX Long/Short Ratio shows a growing dominance of long positions, recorded at 1.67 at the time of writing. This daily surge in the ratio reflects a shift in market sentiment, with more investors in long positions opting to capture profits.

SPX long short ratio Source: Coinalyze

Open Interest Indicates Stronger Market Confidence

The rise in open interest to $29 million is a promising sign since the last time SPX reached this mark, traders saw an immediate price increase. This current uptick indicates that leveraged positions are being established again, signaling that the market is contemplating renewed bullish momentum. With enhanced liquidity and a dominance of long positions, SPX might be gearing up for another attempt at higher resistance levels.

SPX Open Interests Source: Coinalyze

Can SPX Target $0.72 Next?

Currently, SPX is maintaining its position above a significant EMA support level, creating an advantageous market structure for potential growth. Analyzing the daily chart, it appears that SPX is gathering momentum toward the $0.72 resistance. Should buying interest continue to reflect the patterns observed at this open interest level, SPX could soon make a serious attempt to breach the next resistance around $0.72.

SPX price analysis Source: TradingView

Nonetheless, for the rally to continue, it is essential that whale participation remains strong and funding conditions stabilize. At present, the combination of rising open interest, whale accumulation, and robust EMA support keeps the bullish momentum intact as investors look forward to a sustained upward trajectory.