Will the SPX6900 Price Rally Hold or Correct Soon?
The SPX extended its gains, rising another 15% on Monday. The double-digit price increase made it the market’s biggest gainer over the past 24 hours.
However, the growing bearish sentiment surrounding cryptocurrencies has raised concerns about a potential price correction in the coming days.
SPX6900 short bets surge
SPX6900 prices have been increasing since January 1 Impressive winning streaksetting a new all-time high every day. On January 5, the coin’s price climbed to an all-time high of $1.56. Up 15% in the past 24 hours, the SPX appears poised to extend its gains.
However, the growing bearish sentiment towards altcoins may create obstacles in the short term. Despite price increases, SPX futures Traders start shorting in anticipation of a price drop. This is reflected in its long-short ratio, which stood at 0.98 at press time.
An asset’s long/short ratio compares its number of long (buy) positions to short (sell) positions in the market. As with SPX, when its value falls below 1, more traders bet on the price falling (short) instead of rising. If short sellers continue to dominate, it could put downward pressure on prices.
Notably, the SPX’s weighted sentiment, which measures overall positive or negative sentiment toward it, confirms this growing bearish bias. At press time, the value was -0.84.
Values below 1 indicate a negative bias in sentiment surrounding the asset. This means that negative mentions significantly outnumber positive mentions, which can impact the price of the asset.
SPX Price Forecast: Correction or New Highs?
On the daily chart, SPX is overbought, which is reflected in its relative strength index (relative strength index), which stands at 79.33 as of this writing.
The RSI indicator measures oversold and overbought market conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and in need of a correction. Conversely, values below 30 indicate that the asset is oversold and may be due for a rebound.
SPX’s RSI is 79.33, indicating that it is severely overbought, indicating that a potential price correction or reversal may be imminent. If this happens, its price could drop to $1.18.
On the other hand, if The upward trend continuesthe SPX6900 price could hit new all-time highs, possibly triggering a short squeeze.
Disclaimer
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