SPX price rose 25% in 24 hours, significantly outperforming major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and other assets in the top 100. This rally took the altcoin to a new all-time high of $1.25.
Although it recorded a 4% pullback after the feat, the bullish bias towards the token remains significant, suggesting further price growth.
SPX6900 sees increase in trading activity
The surge in activity around SPX is reflected in its rising open interest, which is now at an all-time high of $30.46 million. According to Coinglass, the OI has increased by 90% in 24 hours.
Open interest measures the total number of outstanding derivative contracts, such as futures or options, that have not been settled or closed. When open interest increases during a price rally, new money is entering the market, indicating increased participation and confidence in the uptrend.
This signals that the rally has momentum and is less likely to be a short-term move.
SPX Open Interest. Source: Coinglass
Furthermore, the SPX Long/Short ratio confirms the bullish bias towards the altcoin. At the close of the article, it is at 1.03. In this sense, the Long/Short ratio of an asset measures the proportion of its long (buy) positions in relation to its short (sell) positions in the market, reflecting the sentiment of traders.
As with the SPX, when the ratio is above 1, it shows that more traders are taking long positions, often signaling bullish sentiment.
SPX Long/Short Ratio. Source: Coinglass
Price prediction
On the daily chart, SPX’s Chaikin Money Flow (CMF) highlights the growing demand for the altcoin. Currently, this indicator, which measures the flow of money into and out of an asset, is trending up at 0.08.
When a security's CMF is positive, it indicates that buying pressure is stronger than selling pressure, suggesting bullish sentiment in the market. If this bullish sentiment persists, the SPX could reclaim its all-time high of $1.25 and surpass it.
SPX Price Analysis. Source: TradingView
However, if token holders start selling to take profits, it could invalidate this bullish projection. In such a scenario, the SPX price could drop to $0.99.
The article SPX6900 (SPX) soars and outperforms major cryptocurrencies appeared first on BeInCrypto Brasil.
