The SPX6900 (SPX), a leading memecoin, experienced a significant drop of over 11% today, amidst the current volatility in the cryptocurrency market. Despite this, in-depth analysis suggests that the SPX might be poised for a potential bullish reversal, supported by a bullish Gartley harmonic pattern currently forming.
On the daily chart, the SPX appears to be completing a bullish Gartley harmonic pattern. With the recent pullback, the price is approaching the final leg of this structure (CD), reaching the Potential Reversal Zone (PRZ) around the 0.886 Fibonacci retracement level of the XA leg, closely corresponding to the $1.06 threshold.
This key level (major demand zone) often acts as a springboard for a bullish reversal if buyers step in with conviction. If SPX confirms a bounce from this zone, the harmonic pattern could trigger a recovery toward higher Fibonacci extension levels. Potentially reaching around $1.8.
Confirmation of an SPX bounce around $1.06 would pave the way for a potential recovery movement. An initial resistance would be located near the 0.618 retracement at $1.64, with an additional bullish target around the 1.0 retracement at $2.00. These zones would correspond to previous resistance levels and represent a significant recovery from current prices. That’s a potential increase of over 70%.
However, investors should remain cautious about a bearish scenario. Failure to maintain above $1.06 would highlight the next major support around the 200-day moving average at approximately $0.99. A breakdown below this level could invalidate the bullish setup and expose SPX to more significant losses.
In conclusion, SPX appears to be showing encouraging technical signals that suggest potential for a short-term bounce. Savvy investors will closely monitor how this situation evolves and seize opportunities as they arise.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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