SPX surges 23% to new ATH: THESE levels will decide the memecoin’s next moves

Key Takeaways

SPX hit a new all-time high after a $1.85 rally, as accumulation across the market stayed elevated. In the short term, the asset may experience a pullback to find support.

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SPX6900 [SPX] surged 23% in the early hours of trading, entering a price discovery phase after setting a fresh record high.

While the memecoin continues to trade at elevated levels, AMBCrypto’s analysis shows that a short-term decline may be likely before a broader rally.

Supporting this outlook, memecoin and altcoin sector indexes continue to show bullish data backing the asset’s rise.

Momentum-backed rally is here

SPX’s new ATH follows notable spot market acquisitions.

Over the past 24 hours, $1.47 million worth of additional tokens were purchased during the rally. However, this was not the only factor driving momentum.

Between the 13th to the 15th of July, total accumulation across exchanges—measured by Spot Netflow on CoinGlass—reached $4.99 million.

In the derivatives market, liquidity injections were far greater, roughly 23 times higher than the spot purchases during the same period.

Open Interest surged by $116.2 million, bringing the total to $226.6 million, a 52.24% increase over the past day.

Combined Open Interest and Funding Rate data showed weighted sentiment reaching its yearly peak at 0.0734%.

A short-term SPX dip ahead?

Bollinger Bands and the Relative Strength Index (RSI) suggested that a potential decline could be near.

The Bollinger Band uses three bands to assess price trends: the upper band (overbought), the lower band (oversold), and the middle band (neutral).

At press time, SPX traded within the upper band, a known signal for a possible pullback. However, there’s no guarantee to when the pullback would begin.

The RSI helps time such moves. Once RSI climbs past the 70 level and begins to decline again, it typically confirms a bearish turn.

In this case, RSI suggests SPX could dip toward the middle band level near $1.58, which may act as support before the price trends higher again.

Bull run still intact

Despite possible short-term volatility, the broader bull run remains intact.

At the time of writing, SPX ranked third on CoinMarketCap’s Altcoin 90-Day Index with a 295.68% gain.

This index tracks token performance over a 90-day period. Notably, the top five entries are all memecoins, highlighting the segment’s growing strength.

Interestingly, Artemis data reveals that despite the memecoins’ surge, the broader sector has posted only an 11% gain over the past seven days.

This suggests the market still holds further upside potential, with top memecoins like SPX outperforming the sector average, capturing more growth.