SPX6900 Soars 15% to New Highs – Could a Short Squeeze Push It Even Higher?

The SPX long/short ratio currently sits at 0.58, signalling a short seller majority. Given bullish SPX6900 price forecasts prevail, these shorts might face forced buybacks, driving the price even higher.

However, the high aiming meme coin does appear to be showing cracks. While Monday’s growth topped SPX6900 at a 60% weekly gain, it has slipped 5.31% today.

Trading activity is also cooling off too, scraping $93 million with a 12% drop in volume, casting doubt on a potential short squeeze.

SPX6900 Price Shows Cracks: Is a Short Squeeze in Play?

While today’s decline could just be a hiccup, the asset does show signs of exhaustion. On Monday, the daily Relative Strength Index (RSI) reached deep overbought territory at 80.

Breaking above the overbought threshold of 70 often signals an impending correction, a natural step to establish more stable footing for future gains.

Looking closer, this appears to be the case as the MACD line loses its position above the signal line on the 4-hour chart, a sign that the bulls have taken a backseat, and the bears control the next move. A short squeeze may not be the next move.

More so, the MACD line has slipped decisively below the signal line on the 4-hour, a sign that the bulls have taken a backseatm, and the bears are now steering the next move,.

As to how far it will go? The formation of an ascending broadenign wedge around the uptrend offers clues. If the downtrend pushes lower, a bottom target at the pattern’s lower support, around the $1.1342 support level, seems plausible.

However, the 50SMA has provided strong support so far. It could act as an early safety net, especially if the RSI reaches more neutral levels.

Given another push occurs, the next test of the patterns upper boundary could target $1.90, a 35% advance on current prices. Though, with these bottom targets, a 10-20% drop beforehand is likely.

This New Opportunity Could Rally Harder

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