SPX Token Price Soars, Liquidating Short Positions
The price of SPX surged 50% during Friday’s intraday trading session. This unexpected price increase triggered a wave of short liquidation, causing many short traders to face huge losses.
As the SPX token price prepares to extend its gains, its short traders may face more liquidations.
SPX short traders suffer record losses
During Friday’s trading session, SPX value surges 50%climbing to a nine-day high of $1.55. The price rise triggered massive short-selling liquidation futures According to data from Coinglass, the market totals $1 million.
Liquidation occurs in the derivatives market for an asset when its value moves against a trader’s position. In this case, the trader’s position will be forced to be liquidated due to insufficient funds to maintain it.
Short liquidation occurs when traders with a short position are forced to buy back the asset at a higher price to cover losses when the asset’s value rises. This occurs when an asset’s price exceeds a critical level, forcing traders who had bet on a decline to exit the market.
It’s worth noting that the losses for SPX traders may not be over yet as trading activity continues to climb. This is evidenced by the coin’s open interest, which increased by 137% in the past 24 hours. This comes amid a 32% surge in the token’s value over the same period.
Open interest tracks the total number of open derivatives contracts, such as futures or options, that have not yet settled. When it spikes during such a price increase, it signals increased market participation and confidence in the price increase.
Therefore, if the upward trend in SPX price continues, its short traders will suffer greater losses.
SPX Price Prediction: Token Eyes Hits All-Time High
SPX surges 50% This prompted a change in the position of its Super Trend indicator. It is now a green line providing dynamic support below the coin’s price on the daily chart.
This indicator tracks the direction and strength of an asset’s price trend. It appears as a line on a price chart that changes color to indicate the current market trend: green indicates an uptrend and red indicates a downtrend.
When an asset’s price trades above the Supertrend indicator, it is in a bullish trend. This suggests buying pressure from market participants is outweighing selling activity.
If this continues, the price of SPX will rebound back to its all-time high of $1.65. However, if the sell-off begins, SPX Token Price Will Lose Recent Gains and could fall to $1.23.
Disclaimer
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