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SPX6900 [$SPX] was built to emulate the S&P 500 index and maybe flip it, according to its developer. However, that seems to be a far-fetched idea.
SPX6900 rose to a $2 billion market cap but has since dropped to $300 million, an 86% decline.
In the past 24 hours, SPX6900 lost about 10% of its cap, aligning with the broader memecoin market, which lost 4.27%. Its daily trading volume also increased by more than 15%, confirming the sell pressure. But where was this selling coming from?
What are holders doing?
As per on-chain data of holders of $SPX on the Solana [SOL] blockchain, it was evident that they were selling.
Token balances of Smart Money wallets declined by almost 1% during this period to around 63,529. This indicated the informed traders were selling their $SPX holdings.
Additionally, high-value wallets with over $1 million in $SPX were cashing out. This number of whales decreased by 38% to around 37,280 as of press time.
Public figures who have been very promotional of the token have also turned their backs on it. The number of public figures holding $SPX decreased by 97%, and now, only 2,533 of their wallets are remaining.
Source: Nansen AI
Exchange balances show that not only large holders are selling but also retailers. According to Nansen AI, the exchange balance increased by 14%, or 6.59 million $SPX, which is now ready for sale. Moving tokens into exchanges often signals looming selling activity.
All was not lost, as the top 100 addresses increased their holdings by more than 8%. This group acquired approximately 41.08 million $SPX.
However, the result of gauging the behavior of all these holders was that they were selling. The capital inflow from the top 100 addresses was insufficient to offset the massive sell-offs by four groups.
$SPX breaks below key levels
Hence, the SPX6900 price broke below key levels, confirming this sell pressure.
The memecoin dropped into a three-month sideways range consolidation after breaking below $0.3764. This level coincided with the 100-day moving average (DMA), which was at $0.3799. This meant $SPX had lost a midterm support level.
Additionally, the Chaikin Money Flow (CMF) was in the negative territory, that is, at -0.15. This indicator confirmed the sell pressure seen from the holders.
Source:
$SPX/USDT on TradingView
If memecoins continue to weaken, then $SPX may drop to the support of the range at $0.2530.
However, if $SPX reclaims the lost levels, the uptrend that started in early May may resume. This is potentially because traders might buy, seeing the drop as a discount.
Final Summary
- SPX6900 dropped more than 10% in 24 hours as holders increasingly sold their tokens.
- $SPX price lost two key support levels as it dropped back to a three-month range.
