The broader cryptocurrency market is demonstrating notable upside momentum, with both Bitcoin (BTC) and Ethereum (ETH) trading in strong positive territory. Ethereum (ETH) has seen gains of over 6% in the last 24 hours, contributing to the recovery of several memecoins, including SPX6900 (SPX).
SPX is currently experiencing modest gains. More significantly, its chart is forming a classic bullish pattern that could potentially support a powerful upside continuation if a breakout occurs.
Inverse Head and Shoulders Pattern in Play
On the daily chart, SPX has developed a clear inverse head and shoulders pattern, which is widely recognized as one of the most reliable bullish reversal patterns.
The pattern began with the formation of the left shoulder early last month. This was followed by a downward movement to the $0.4344 region, establishing the head. Subsequently, buyers regained control, leading to a higher low at $0.5830, which formed the right shoulder. SPX has since trended upwards and is presently trading within the neckline resistance band, which spans from approximately $0.7275 to $0.7509.
This neckline has been tested on multiple occasions without a sustained breach. The zone has acted as a significant supply barrier for over a month. A definitive daily closing price above $0.7509 would validate the inverse head and shoulders structure and could serve as the catalyst for a substantial bullish expansion.
Outlook for SPX
Should SPX successfully break above the neckline resistance at $0.7509, the inverse head and shoulders pattern projects a target price of $1.0674. This would represent a potential rally of 46% from the breakout level.
A clean breakout followed by a retest of the neckline would provide the strongest confirmation of a trend reversal. This development would also coincide with the improving sentiment in the broader market, as liquidity continues to flow back into altcoins and memecoins.
For the time being, market participants are closely observing the neckline. A decisive upward movement above this level could pave the way for SPX's next significant upward price movement.