SPX6900 (SPX) price has experienced wild price swings, falling more than 8% in the past 24 hours amid a broader meme coin market correction.

The correction comes after a period of overbought conditions, and technical indicators suggest further declines or a reversal could be in the cards if buying momentum resumes. The next few days will be critical in determining whether SPX prices can resume their bullish trend or face a deeper correction.

SPX RSI falls to lowest level in 20 days

The SPX relative strength index ( RSI ) has fallen sharply to 33.4, down sharply from the overbought level of 81.4 three days ago. The RSI is a momentum indicator that measures the speed and magnitude of price changes on a scale of 0 to 100.

A reading above 70 typically indicates overbought conditions, suggesting a price pullback may occur, while a reading below 30 indicates oversold conditions, usually signaling a potential rebound. The RSI for SPX is 33.4, slightly above the oversold threshold, marking the lowest point since December 20.

The sharp decline in RSI highlights the heavy selling pressure and weakness in SPX. While the current level indicates bearish sentiment is dominant, it also suggests that SPX price may be approaching oversold conditions.

If the RSI continues to decline or stabilizes around 30, it could create conditions for a price rebound as buying interest may resume. However, if market sentiment does not change significantly, SPX price may continue to consolidate or decline in the short term like other meme coins.

SPX BBTrend is declining.

SPX BBTrend remains positive at 17.1, although it has been steadily declining from a recent high of 38 on January 6. BBTrend is derived from Bollinger Bands and is used to measure the strength and direction of price trends. Positive values indicate bullish momentum, while negative values indicate bearish conditions.

SPX BBTrend is currently at a level of 17.1, indicating that despite nearly 15% of the pullback in the past 24 hours suppressing upward momentum, the token still retains some potential bullish sentiment. However, the steady decline of BBTrend suggests that unless buying activity increases to stabilize the price, the risk of further declines remains.

The continuation of the current trend may lead to consolidation or further correction. However, a recovery in BBTrend may signal a resurgence in bullish momentum, allowing SPX to remain among the top ten meme coins.

SPX Price Prediction: Further Adjustment of 48%?

The EMA lines for SPX still maintain a bullish setup, with the short-term EMA positioned above the long-term EMA. However, the short-term line is trending downward, increasing the likelihood of a death cross—where the short-term EMA falls below the long-term EMA.

This bearish signal may exacerbate the recent adjustment in SPX price, leading to a test of the support level at $0.937.

If this critical level is lost, the meme coin could decline further, potentially dropping to $0.819 or even $0.615, representing a significant pullback of 48% from current levels.

Conversely, renewed enthusiasm for meme coins may provide the momentum needed for SPX price to reverse the current trend. In this scenario, the token could rise to challenge its recent resistance level of $1.64.