SPX6900 (SPX)’s recent price correction has attracted scrutiny regarding its next major directional movement as the meme coin tests a significant resistance zone around $1.881 and $2.041.
Investors are keenly observing whether the meme coin will breach this zone soon or consolidate further. The asset’s price is currently hovering around $1.62, with its price forming an ascending channel, according to data posted today by market analyst Anup Dhungana.
The Rising Ascending Channel Suggests Optimism
Despite the meme coin having been underperforming over the past several weeks, the presence of this bullish channel has suppressed its volatility, with the upper border functioning as a reliable cap on upturn momentum.
According to the analyst, SPX has been retesting the significant resistance region several times in the recent past and was unable to break it.
However, things seem different with the formation of the ascending channel, as pointed out by Anup. According to the analyst, with the retests and recent price actions, a breakout could be imminent to occur. The token seems to display some ability to break the resistance zone soon, which could lay the foundation for the meme coin to reach a high of $2.30 and even beyond.
The current consolidation places SPX back to a major support range between $1.089 and $1.21, which has historically fueled upturn momentum. This channel remains intact so long as the price holds above this support region.
What’s Next for SPX?
SPX6900 has been experiencing difficulties in the past multiple weeks. This is evident in its recent price trajectory, which has been down 21.9% and 18.9% over the last seven days and two weeks, respectively. The coin’s value currently stands at $1.62, up 9.2% from yesterday.
For market participants, the current situation presents both opportunities and dangers. If the meme coin could breach the resistance zone with robust volume, its next target could be $2.30. A fall below the support level might indicate a further consolidation. It is prudent for market participants to remain updated on market developments, as currently, most crypto assets are experiencing corrections. Portfolio diversification is a viable solution to mitigate risks.
