SPX6900 Rebound to $1.24 volume surged by 85.8% Bull vs Bear Battle intensifies

In the coin world, after falling to a low point of 0.92 US dollars, SPX6900 [SPX] Rebound retested the key 1 dollar support level. Of course, following the easing of geopolitical tensions, this Rebound came with an improvement in overall Crypto Assets sentiment. Simultaneously, SPX regained lost ground, marking a sharp rise. SPX6900 futures woke up in the midst of a price surge.

Riding the wave of this recovery, SPX surged to a local high of $1.26, before experiencing a slight pullback. At the time of writing, it is hovering around $1.24, marking an 18.78% increase in the past 24 hours. This isn't the only surging figure. The trading volume of SPX has skyrocketed by 85.8% to reach $161 million. Such a huge increase in trading volume indicates increased activity from either the buy side or the sell side. Interestingly, most of the activity is coming from the derivatives market.

The open interest of SPX6900 (OI) has expanded by 28.52% to $1.172 billion, indicating a large influx of new contracts. This growth in OI implies that as prices begin to rise, investors are entering the market to take strategic positions. In fact, the long/short ratio remains above 1, confirming that the majority of traders hold long-term bets.

The market signals are out of sync. Despite the sharp increase in the price, trading volume, and futures activity of SPX6900, it seems that the main market participants are not convinced. This is because investors in SPX6900 are actively selling. After the price recovery in the past day, most holders have turned to profit-taking. From the perspective of exchange flow balance, it still remains at a positive value of around 25,800. This positive value indicates that more investors and holders are selling than buying. Therefore, the funds flowing into the exchange are more than those flowing out, which may lead to higher selling pressure.

Most importantly, the net inflow of funds has also turned positive. This indicates that although prices are rising, investors have sold nearly 7 million SPX representative coins. More notably, there is a significant fall in the inventory flow rate. On June 23, the SFR of the memecoin reached as high as 21 billion. As of the time of writing, it barely maintains at 11,000. Such a significant drop in SFR indicates a high supply and low demand. If demand fails to keep up, the lower scarcity will lead to a fall in prices.

So... What now? $0.95 or $1.5? Despite a significant rebound, there is an obvious tug of war between speculators and sellers. While short-term traders have joined in the broader market relief, long-term faith seems to be shaken. Unless the bulls can maintain a daily closing price above $1.20, the upward momentum may lose steam. If sellers maintain dominance, SPX may return to the support level of $0.95. But if the momentum holds and $1.20 becomes a solid support, SPX may surge towards the next $1.5.