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SPX6900, a popular meme coin, has seen a significant upward trend since March, establishing itself as one of the top-performing cryptocurrencies in the market.

SPX6900 Price Surge and Market Position

The price of SPX6900 reached a high of $1.222 on May 29, marking its highest point since January. This represents an impressive gain of nearly 350% from its March low, pushing its market valuation beyond $1 billion. Currently, SPX6900 ranks as the eighth-largest meme coin in the cryptocurrency sector.

The token’s remarkable rise has been fueled by a growing sense of fear of missing out (FOMO) among investors. The total number of holders has surged from 29,000 at the start of the year to over 40,000. This increased activity is also reflected in the growing number of mentions across social media platforms, underscoring its popularity.

Potential Risks for SPX6900’s Price

Despite its recent rally, several fundamental and technical factors suggest that SPX6900 could face downward pressure in the near future.

Rising Token Supply on Exchanges

Recent data indicates a significant increase in the supply of SPX tokens held on exchanges. Santiment reports that exchange-held tokens have risen to 87 million this month, up from a low of 41 million in January. Meanwhile, Nansen data shows an even higher figure of 141 million tokens on exchanges, representing a 6.5% monthly increase. This trend often signals that investors are beginning to take profits following a sharp price rally.

Whale Activity and Smart Money Trends

Large holders, or whales, appear to be reducing their SPX6900 positions. Wallets holding between 1 million and 10 million tokens now collectively hold 300 million coins, down from 330 million last month. Similarly, wallets with between 100 million and 1 billion tokens have decreased their holdings to 148 million, compared to 163 million in April.

Additionally, data from Nansen reveals that smart money investors now hold just 4.6 million SPX tokens, reflecting a 10% monthly decline. This drop to record-low holdings suggests that these experienced investors anticipate further downside for the token.

Technical Analysis: Rising Wedge Pattern

From a technical perspective, the SPX6900 chart reveals a concerning pattern. A rising wedge has formed on the 12-hour chart, with the lower trendline connecting the lowest swings since May 7 and the upper trendline linking the highest swings since April 14. These trendlines are converging, creating the potential for a bearish breakout in the coming days.

If this breakout occurs, key support levels to monitor include $1.00, followed by $0.6383, the lowest point recorded on May 18.

Key Takeaways for Investors

While SPX6900 has demonstrated impressive growth, the current data highlights potential risks. The increasing supply of tokens on exchanges, reduced whale holdings, and bearish chart patterns suggest that caution is warranted. Investors should closely monitor market trends and consider these factors when making decisions regarding SPX6900.

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