Here's Why the SPX Correction is Over | Credit: Hameem Sarwar
Share
Key Takeaways
SPX6900 (SPX) is breaking out from a diagonal resistance trend line.
The SPX price has completed a five-wave downward movement since July.
Has SPX finally completed its correction, and if so, what’s next for the price?
The SPX memecoin is showing signs of strength after weeks of weakness. It has reclaimed a key support level and is attempting a breakout from diagonal resistance.
If the SPX price breaks out, it will confirm that a bullish trend has begun and could lead to a 40% price increase in October.
Let’s examine the charts and see if this will happen.
SPX Price Reclaims Resistance
The SPX price has fallen under a descending resistance trend line (dashed) since its $2.28 high on July 28.
After a 60% decline, the SPX price fell to a low of $0.90, falling below the confluence of support levels at $1.03.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
While the breakdown was an extremely bearish sign, suggesting that new lows are likely, the price movement since then has completely reversed the prediction.
The SPX price surged by 25% and is attempting to break out of today’s diagonal resistance trend line.
The resistance has existed for 66 days, so a breakout above it will confirm the end of the correction.
If that happens, SPX could quickly ascend 40% to the 0.618 Fibonacci retracement resistance level at $1.75.
Momentum indicators are bullish. This is especially evident in the Moving Average Convergence/Divergence (MACD), which has created a bullish divergence (orange) and made a bullish cross (black circle).
The Relative Strength Index (RSI) is also bullish, although not to the same extent.
Although it moved above 50, the indicator has not generated any bullish divergence.
Will SPX Break Out?
The SPX wave count suggests a bullish breakout is likely, but also indicates that the long-term trend is bearish.
According to the count, SPX has completed a five-wave downward movement, indicating that the long-term trend remains bearish.
However, it also means that the long-term trend is bearish.
This is because the five-wave decline (red) is either wave A in an A-B-C correction or wave one in another five-wave decline.
In both cases, a significant price increase is likely.
Even if the rally is corrective, the SPX price will likely hit the 0.618 Fibonacci retracement resistance at $1.76.
The reaction once SPX reaches that level will determine whether the future trend is bullish or bearish. If the price closes above $1.76, it could pave the way for a new all-time high.
SPX Breakout Incoming
The SPX price reversed its trend by reclaiming a long-term horizontal and Fibonacci support area.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
