SPX, a leading index, has encountered a notable decline of 10.27% within the last 24 hours, bringing its price down to $1.14. This drop coincided with a reduction in trading volume of 31%, which now sits at $59 million. The marked decrease in liquidity flow and trading activity has intensified selling pressure from bearish market participants. Despite the current downward trend, there remains a significant demand level that could become a pivotal point for a rally from the bulls.
Examining the SPX 4-hour chart, it is apparent that the index has traded into a Fair Value Gap (FVG) demand zone—a price area characterized by unfilled buy orders. Traditionally, this zone can act as a springboard for potential price recovery. If this FVG demand zone holds, it may pave the way for SPX to rebound back to $1.36, signaling a potential 17.93% increase. Conversely, if the demand zone fails to sustain its support role, SPX could decline further to between $1.056 and $1.025, a level that previously catalyzed a rise to over $1.4, indicating that a similar recovery might occur should prices revisit this area.
To gauge the likelihood of the FVG demand zone holding, two significant technical indicators were analyzed: the Chaikin Money Flow (CMF) and the Money Flow Index (MFI). The CMF, which assesses the market’s buying or selling pressure, registered at -0.10, suggesting that selling is currently dominant. This trend has contributed to decreased market liquidity. The MFI, which measures liquidity inflow or outflow, recorded a score of 42.6 at the time of writing, indicating heightened outflows and placing SPX at a critical threshold. With rising selling volume and diminishing liquidity, the resilience of the FVG zone seems questionable.
On a broader scale, SPX continues to shine as one of the top-performing assets. The 90-day Performance Index for cryptocurrencies reveals that SPX has achieved an impressive 131% gain, making it the highest-performing memecoin in this timeframe. This robust performance reflects ongoing strong interest in SPX, suggesting promising potential for recovery despite the recent downturn. Community sentiment reveals that 82% of investors remain optimistic about the asset, indicating a collective bullish outlook amidst the current price challenges. While SPX is facing pressure, it is clear that the market retains hope for a turnaround.