Market Direction

SPX eyes recovery after testing $0.40 zone

Published: Nov 19, 2024

As the memecoin market cools, SPX tumbles to new lows. With $0.40-$0.49 support in sight, let’s analyze where SPX could head next.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Key horizontal levels were lost, and SPX has continued its downtrend.
Price is now beneath the $0.49 horizontal support with the $0.40 support in sight.
This downtrend has been quite strong, but this is becoming overextended to the downside here. We'd expect a bottom either here or close to $0.40, assuming this level gets tested. We're not ultra-confident. It does get tested.
The key levels for the price to reclaim to the upside are $0.49 and then $0.65.

SPX-WETH 4-hour chart showcasing a descending trendline, key support at $0.4022, and resistance levels at $0.6505 and $0.7518.

Cryptonary's take

This move lower was to be expected. 6 weeks ago, we had max hype around this coin, having run 100x. Early buyers would have been making major profits, so there's always going to be that element of locking profits in. You then also need much larger capital to come in to keep prices high. However, the downtrend has been extreme, although it is typical of memes (WIF, POP included), so it's possible SPX may be reaching or potentially close to a bottom. We're thinking $0.40 to $0.49 is the bottoming area. For those looking to pick up a new position in SPX, between $0.40 and $0.49 is possibly a good area to do so.