Key Takeaways
What triggered SPX’s recent 28% rally?
Bullish technical patterns like the MACD Golden Cross and rising RSI fueled strong buying momentum.
How are investors reacting to SPX’s surge?
Whales are accumulating aggressively while retail investors show signs of profit-taking, creating mixed short-term pressure.
SPX6900 [SPX] posted a strong 28% rally over the past week, at press time, fueled by a surge in market liquidity.
Analysis reveals that whale activity on Binance was a key driver behind the move, with AMBCrypto uncovering deeper insights into the forces at play.
Why did SPX prices spike?
The SPX market has seen a major bull rally in recent days, fueled by the formation of bullish technical patterns.
First, the Moving Average Convergence Divergence (MACD) formed a bullish signal known as the Golden Cross.
This pattern occurs when the blue MACD line crosses above the orange signal line, suggesting more capital is entering the asset and a rally is near.
Source: TradingView
The Relative Strength Index (RSI) also showed strength, climbing into the bullish region between 50 and 70. At press time, RSI stood at 54, signaling that bullish momentum is building and reinforcing the positive market outlook.
$19 million inflow: What does this imply?
Open Interest surged over the past day, rising to $101 million, at press time, as derivatives investors injected $19.4 million into the market.
This increase coincides with the Weighted Funding Rate average staying in the bullish zone, with a reading of 0.0119%, its highest since the 21st of September.
Source: CoinGlass
Analysis of the Long-to-Short ratio shows that Binance’s top traders by account size and position contributed significantly, with readings of 1.35 and 1.02 respectively.
A ratio above 1 implies stronger buying activity, which aligns with the bullish move.
Notably, investors on Binance controlled $64.72 million in total trading volume, accounting for the second-highest trade count at 495,240.
Retail investors are pushing back
Retail investors, however, appear to be taking the opposite side of the rally. Data from CoinGlass’ Exchange Netflow revealed that investors have sold over $2.1 million worth of SPX so far.
Source: CoinGlass
That selling pressure has eased in the past day, with just $370,000 worth sold, compared to $1.8 million the day before.
Such outflows often weigh on price and can stall further gains in the short term.
SPX price outlook
Market analysis shows that SPX maintains a positive outlook. At the time of writing, the asset has broken above the descending resistance line on the chart and is trending upward.
If bulls continue to outpace bears, SPX could rally toward the next resistance level at $2.28, extending the bullish run that began in the early hours of the day.
Source: TradingView
