SPX continued its rally, climbing another 15% on Monday. This double-digit price increase made it the strongest performing cryptocurrency in the past 24 hours.
However, the growing bearish sentiment surrounding the cryptocurrency raises concerns about a possible price correction in the coming days.
SPX6900 Short Bets Explode
Since January 1, the price of SPX6900 has been on an impressive streak, setting new highs every day. On January 5, the token price climbed to a new high of $1.56. With a 15% increase in the last 24 hours, SPX looks likely to continue its upward momentum.
However, the bearish sentiment towards the altcoin could create a short-term hurdle. Despite the price increase, SPX futures traders have started placing short bets, anticipating a drop in price. This is reflected in its Long/Short Ratio, which is currently at 0.98.
SPX Long/Short Ratio. Source: Coinglass
The Long/Short ratio of an asset relative to the number of long (buy) and short (sell) positions in the market. With the SPX, when the value is below one, there are more traders betting on the price falling than rising. If short sellers continue to dominate, this could put downward pressure on the price.
Notably, the SPX's weighted sentiment, which represents overall positive or negative sentiment, also confirms this growing bearish trend. As of now, the index is at -0.84.
SPX Weighted Emotions. Source: Santiment
A value below one indicates a negative bias in sentiment around the asset. This means there are more negative than positive sentiments, which can affect the asset's price.
SPX Price Prediction: Correction or New High?
On the daily chart, SPX is in overbought territory, as reflected by its Relative Strength Index (RSI) reading of 79.33 at the moment.
The RSI measures overbought and oversold market conditions of an asset. It ranges from 0 to 100, with a value above 70 indicating that the asset is overbought and likely to correct. Conversely, a value below 30 indicates that the asset is oversold and likely to rebound.
At 79.33, SPX's RSI shows that it is overbought, suggesting a possible price correction or reversal. If this happens, its price could drop to $1.18.
SPX Price Analysis. Source: TradingView
Conversely, if the uptrend continues, the SPX6900 price could hit a new high, potentially triggering a “short squeeze.”
