SPX6900 Shows Signs of Strong Recovery as Whale Activity and Funding Rates Turn Bullish

SPX6900 (SPX) is trading near $0.45 as of Friday, maintaining stability after rebounding from a key support area earlier this week. 

The asset’s price action is now showing signs of renewed strength, backed by improvements in both on-chain activity and derivatives market conditions. 

With rising trading volume, increased whale participation, and recovering technical indicators, SPX appears poised for a potential continuation of its upward move.

Whale Activity and Market Structure Support an Upside Scenario

According to market data aggregated by CryptoQuant, SPX is experiencing a combination of rising whale orders and improving market structure, providing favorable conditions for bullish continuation.

Large-value transactions, typically associated with institutional players or high-net-worth investors, have increased noticeably, signaling confidence among deep-pocketed participants. 

Meanwhile, easing market conditions and a clear buy-side dominance in spot activity suggest that the recovery may be gaining traction.

Derivatives Market Flips Bullish as Funding Rates Turn Positive

The derivatives market is also showing improving sentiment. Data from Coinglass indicates that the OI-Weighted Funding Rate flipped positive on Thursday, currently sitting at 0.0018%. 

This shift means that long positions are paying shorts, an indicator that trader sentiment has moved toward expecting price appreciation.

Historically, SPX6900 has shown sharp rallies shortly after funding rates flipped from negative to positive, a pattern visible in past cycles. The latest transition may therefore signal the early stages of another upward move.

Trading Volume Surges to Highest Level Since Early November

On-chain analytics from Santiment reveal that SPX ecosystem trading volume climbed to $65.61 million, marking its highest level since early November. Volume has been rising steadily since mid-November, highlighting renewed interest and improved liquidity across exchanges supporting SPX.

Rising volume typically strengthens bullish setups by confirming heightened market participation and validating price movements.

Technical Indicators Show Fading Bearish Pressure

Alongside on-chain and derivatives data, technical indicators support the idea of diminishing selling pressure. 

SPX’s rebound from support, combined with stabilizing momentum indicators, suggests that bearish sentiment is weakening and an extended recovery could follow.

Outlook: Conditions Align for a Potential SPX Continuation Rally

With whale accumulation rising, positive funding rates favoring bullish positioning, and ecosystem trading volume hitting multi-week highs, SPX6900 appears to be building momentum for further upside. 

While market conditions can shift rapidly, current data points to strengthening support for a continued recovery rally.

If momentum sustains and volume remains elevated, SPX could attempt to reclaim higher resistance levels in the days ahead.