Meme Coins Have Been the Biggest Victim of the Recent Crypto Market Downtrend

Usually, such dips present an opportunity for traders to enter long positions if the downtrend shows signs of exhaustion. However, this has not been the case with the SPX6900 (SPX) meme coin, as traders have rapidly opened short positions despite a 30% crash.

Meme coins have been the biggest victims of the recent crypto market downtrend after their total market cap dropped by more than $10 billion in just one week. Usually, such dips present an opportunity for traders to enter long positions if the downtrend shows signs of exhaustion. However, this has not been the case with the SPX6900 (SPX) meme coin, as traders have rapidly opened short positions despite a 30% crash. Why? Let’s explore.

Investors Increase Short Positions on SPX Meme Coin

In most cases, after a crypto market crash and possible seller exhaustion, prices tend to rebound as traders accumulate the dip. However, according to Coinglass, traders anticipate that SPX is yet to find a local bottom despite the price falling by 30%.

The SPX meme coin has seen a rapid surge in short positions. In fact, the token has the largest number of newly opened short positions in the last 24 hours. Open interest rose by 81% as traders increased their bets that the meme coin price would decline further.

SPX is one of the low-cap meme coins with a $256M market cap. At press time, the meme coin traded at $0.27 after a staggering 23% drop in 24 hours. This decline coincides with analysts such as Arthur Hayes saying SPX is a stonk that will enter a “free fall.”

Expert Trader Makes $3.3M Loss After SPX Crash

Top crypto analyst and trader Murad has suffered a $3.3M loss on his SPX holdings after the meme coin price fell by 30%. Murad was a major promoter of SPX and had initially predicted that it would flip Dogecoin by market cap.

However, data from Arkham shows that after the price dropped, this trader suffered a 30% loss. Murad, who previously said SPX was one of the top meme coins to buy holds 29.96 million tokens, valued at approximately $7.9 million.

Such steep losses are fuelling the negative market sentiment around the SPX meme coin, causing the high demand for short positions.

SPX Price in Focus – Can the Meme Coin Recover?

SPX price has fallen by 81% from its all-time high of $1.27 posted in January 2025. This meme coin is now facing another drop to the 123.6% Fibonacci retracement level of $0.139.

The bearish momentum is growing strong, which is clearly shown by the oversold RSI and the Awesome Oscillator bars that are growing longer. As traders continue to record losses, it is bound to reduce buyer interest and push the price lower.

Ultimately, the SPX meme token has posted the most decline in the last 24 hours and traders are recording millions of dollars in losses. With rising short positions showing low confidence in a price recovery, SPX price may drop below $1 in the near term.