Key Takeaways
For SPX, long liquidation clusters have historically been great entries. The entry level in the heatmap coincided with the $1.60 orderblock on the price chart. Can SPX drop to $1.60?
SPX6900 [SPX] has hit the $2 zone, making yet another high. According to CoinMarketCap, its price was up about 8% in the last 24 hours as of press time, but volume was wanting.
As the memecoin advances into new highs each day, traders could be looking to join the movement.
Potential SPX entry zone
As per Hyblock Capital, historical data on the liquidation heatmap showed that the levels offered insights on key turning points.
Each time the price of SPX hit these zones, a reaction either to the upside or the downside was experienced.
A lookback period of the last seven days on the five minutes timeframe showed the $1.60 long liquidation cluster was the potential entry point for SPX.
This was backed the tendency of markets to grab liquidity one above and below recent price.
Source: Hyblock Capital
Previously, when price hit liquidated the zone, SPX rose to above $2. This cemented the historical possibility of a reversal in case the $1.60 level was hit.
Implications of SPX revisiting $1.6
Still on entries, looking at the price of SPX using the support and resistance lenses, it showed the level coincided with an order-block on the 3-hour chart.
While the memecoin has been enjoying consistent volume, the sentiment shifted after it hit $2. The seller volume spiked to $321M suggesting traders could have kick-started a pullback toward $1.60.
Source: TradingView
The $1.60 level was also the home of a double bottom pattern that took price past $2. Technically, the chart supported a potential revisit of this zone, but was yet to be confirmed.
Spot flow in red as transactions stay flat
CoinGlass data further showed the bearish momentum was also prevalent on the spot netflow chart. Bybit led in spot outflows, followed by Kraken. The cumulative withdrawals were at $821K hinting at high selling.
Additionally, the sell volume of SPX spot trades on exchanges was also highest in Bybit with $760K, followed by Kraken.
More analysis using IntoTheBlock data showed that the number of transactions had doubled from 1,690 to 3,420 in two weeks.
This could be interpreted as a mix of buying and selling. This because a big chunk of traders wanted to jump on the move while others were taking their profits.
Source: IntoTheBlock
The number of transactions that had increased were dominated by retail, as their range was below $10 SPX as per IntoTheBlock metric.
Worth noting, the OI-Weighted Funding Rate had dropped to 0.0224% from a high of 0.053% the same day. This further explained why the price action of SPX had been slowing down.
