SPX6900 crashes 10% as buyers vanish, but a breakout can still happen IF…

Key Points

1. SPX6900 dropped over 10% on July 1st, extending its weekly loss to 7.25%, driven by a sharp spike in short positions and declining spot purchases.

2. Funding Rate on CoinGlass plunged into negative, with $176,010 of the $199,030 liquidated coming from long traders caught on the wrong side of the move.

3. Spot traders attempted to stabilize the market by accumulating $2.83 million worth of SPX into private wallets, but spot purchases sharply declined from $1.83 million on June 30th to $87,000 on July 1st.

4. SPX traded at a key support level of $1.1720, with a potential 27% rally to $1.6413 if a breakout occurs, though current indicators like the RSI at 47.91 suggest selling pressure remains dominant.

5. A revisit to the lower support near $1.0858 could offer a re-entry point, but retail exhaustion may delay any strong recovery.