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.
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.
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.
