The broader cryptocurrency market is experiencing slight pressure on January 20, with risk sentiment turning cautious once again. Bitcoin (BTC) and Ethereum (ETH) are both trading lower, down 1.69% and 2.45% respectively over the past 24 hours. This sharp move triggered more than $286 million in liquidations, with long positions absorbing the bulk of the damage.
As volatility spreads across the market, memecoins have also felt the heat. SPX6900 (SPX) has dropped near 4%, sliding back toward a technically important area on the daily chart. However, while price action looks weak on the surface, the chart suggests SPX may be approaching a make-or-break zone that could define its next major move.
Descending Triangle Pattern Develops on Daily Chart
From a technical perspective, SPX is trading within a large descending triangle pattern on the daily timeframe. This formation is defined by a series of lower highs pressing against a relatively flat support zone — a structure that often reflects growing selling pressure.
Descending triangles are typically considered bearish, but context matters. When price repeatedly tests a strong base without breaking down, it can also signal accumulation rather than distribution.
In SPX’s case, price has once again dipped into the key demand zone between $0.44 and $0.4775. This area has acted as a reliable support throughout recent months, consistently attracting buyers whenever price revisits it. Each test of this zone has produced long lower wicks, highlighting aggressive dip-buying and a reluctance from sellers to push price lower.
Can Buyers Defend the Base?
As long as SPX holds above the $0.44–$0.4775 support region, the descending triangle remains intact without confirmation of a breakdown. A successful defense here could trigger a relief bounce, potentially sending price back toward the upper trendline resistance near $0.61.
This descending resistance has rejected price multiple times, making it a critical level to watch. A breakout above it would mark a meaningful shift in structure and could signal that buyers are regaining control after weeks of compression.
That said, downside risk cannot be ignored. A decisive daily or weekly close below $0.44 would invalidate the support base and confirm a bearish breakdown from the triangle. Such a move could open the door for a deeper correction as trapped buyers exit positions.
Conclusion
SPX6900 is currently sitting at a pivotal technical crossroads. While broader market weakness has pushed price lower, the daily chart shows that SPX is testing a well-defined demand zone that has consistently held in the past.
As long as buyers continue to defend the triangle’s base, a rebound toward descending resistance remains a realistic scenario. However, a failure to hold support would shift momentum firmly back in favor of sellers.