Key Takeaway
Spark crypto has nearly tripled in the past 30 days of trading before slightly cooling off. Is the Coinbase CEO’s backing enough to erase recent losses and extend the recovery in August?
Spark protocol [SPK] soared 280% in the past 30 days thanks to the staking craze and a shout-out from the Coinbase CEO.
The native governance token of the lending platform, Spark Finance, powered by Sky (formerly Maker), began its rally in mid-July.
In late July, the SPK crypto pumped nearly 400% from $0.036 to $0.19, marking the largest gains during the explosive run.
But it dropped afterwards, bringing the overall rally in the past 30 days to 280%.
Staking craze lights the fuse
In July, Bitcoin [BTC] hit a new record high above $120K, triggering a mini-altcoin season, especially for DeFi tokens.
Amid this positive backdrop, the Spark protocol unveiled Spark Farm, allowing stablecoin suppliers to earn SPK rewards for their digital dollars, whether USDS, DAI, USDC, etc.
Next, Overdrive was launched, allowing users to earn twice as much SPK if they lock it in the platform.
Source: DeFiLlama
The protocol’s TVL (total locked value) soared from $6.3 billion to $8.18 billion over the same period, underscoring the network growth.
The staking-driven demand fueled the rally in July. But everything faded after BTC lost $120K and dropped further.
On the 4th August, the altcoin recovered 31%. The latest rally followed a recent shout-out from Coinbase CEO Brian Armstrong and a slight BTC recovery.
Source: X
What’s next for SPK crypto price?
SPK has flashed a buy signal on the lower timeframe via the Supertrend indicator over the past five days.
If the recovery continues, the next target is the recent high of $0.19, representing a potential 47% upside.
However, for this bullish momentum to hold, $0.12 must be flipped into support. A failure to do so—marked by price rejection at that level—could empower bears to push SPK down toward $0.11 or even $0.09.
Source: SPK/USD, TradingView
To strengthen the bullish case, the On-Balance Volume (OBV) indicator must break above its overhead resistance. This would signal strong buying pressure and reinforce the potential for a sustained recovery.
SPK’s explosive rally in July was fueled by a broader market uptrend and a surge in staking activity within the Spark Finance protocol.
While a supportive statement from Coinbase’s CEO helped spark a temporary bounce, the continuation of SPK’s recovery will likely hinge on the overall market trend.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
