SPX6900 [SPX], the Ethereum [ETH] network memecoin that is meant to be a parody of the S&P 500 index, has rallied 10.2% in the past 24 hours. The daily trading volume was not convincing either, down 38.2% from the previous day’s sizeable sell-off.
Over the past week, SPX has shed 8.79%, and was down 51.95% in 30 days. These figures might sound dreadful, especially if one is more used to trading and investing in traditional markets that the memecoin aims to flip in size one day, but they were the norm in the memecoin sector.
The sector’s market cap has fallen 35% in 30 days. The leader Dogecoin [DOGE] was down 33% in a month, giving context to the more volatile SPX performance.
The chances of an SPX resurgence
Buyers beware. Short-term holders trying to flip an SPX bounce for profit could have a good time. Bitcoin [BTC] bounced 19.59% on the 6th of February, from $60k to $71.7k.
The memecoin rallied 41.15% on the same day, from $0.2214 to $0.3125.
Source: SPX/USDT on TradingView
The weekly swing structure remained bullish. The $0.2533 low from March 2025 has not been broken by a weekly session close below it. However, Bitcoin has a bearish weekly structure.
Buying SPX might seem like a steep discount right now, but there’s nothing to stop it from making new swing lows should BTC retreat to $60k or lower once again.
Should traders sell the bounce?
Source: SPX/USDT on TradingView
The past two months’ price action highlighted the $0.45 level as a prominent horizontal S/R level. In November and December, SPX bulls defended this support valiantly, but lost it in mid-January.
It marked the 50% retracement level for the latest bearish swing move on the daily timeframe. The technical indicators showed high selling pressure and firm downward momentum.
Traders can use a bounce to this level to sell the memecoin. It is possible, though unlikely, that the bounce might climb as high as $0.58-$0.678.
Therefore, investors need to be prepared for extreme volatility in either direction and keep an eye on BTC trends to assess what SPX is poised to do next.
Final Thoughts
- SPX6900, the traditional stock market index parody meme, has fallen to its 2025 swing low support.
- It was a risky buying opportunity with a high chance of failure, but it could reap high rewards. More risk-averse traders can wait for a retest of key resistances to sell.
