Market Direction

SPX risks $0.56 if $0.76 fails

Published: Feb 4, 2025

SPX remains weak below $1.00, risking a further drop to $0.56. Meanwhile, BTC, ETH, and SOL attempt to recover after recent liquidations. What’s next for the market? Let’s take a closer look at key price action.

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.

SPX remains in its downtrend, and the price has now lost the horizontal supports of $1.00 (psychological level) and the $0.92 horizontal level.
Price has found support at $0.76 horizontal support, but this was with big buying pressure (check the volume candle), and the price still wasn't able to reclaim back above $0.92. Note that a lot of the majors, BTC, SOL, etc, were able to recover the horizontal supports from which they initially broke down.
Price will now potentially remain in the range of $0.76 to $1.00 in the short-term.
If the $0.76 horizontal support is lost, we'd expect that $0.56 is only a matter of time.

8. SPXWETH price chart displaying trendlines, support and resistance levels, and volume analysis reflecting recent market corrections.

Next Support: $0.76
Next Resistance: $1.00
Direction: Bearish/Neutral
Upside Target $1.00
Downside Target: $0.56

Cryptonary's take

We're more cautious on SPX going forward. It's been a great play and is still a good meme, but we have seen ceilings for memes between the $1b and $3-$4b MCap range. SPX has hit $1.6b, which is high, and now it's possible that we'll see this capital rotate. Perhaps we're already seeing it.

Hence, we'd always suggest profit-taking along the journey. In the short to medium term, we'd expect SPX to revisit the $0.56 horizontal support, but we do potentially see more range-bound price action between $0.76 and $1.00 in the very immediate term.