Spark [SPK] crypto breakout rally hits 300% – Will it retrace to $0.10?

Key Takeaways

Spark crypto’s 300% explosive upswing faced a price rejection at $0.18 at press time. Can it rally higher amid low selling pressure from exchanges? 

The native token (SPK) of on-chain capital allocator Spark.Fi fronted a breakout earlier this week, triggering gains of 300% in three days. 

However, at press time, the altcoin faced a price rejection at $0.18, hinting at a slight uptick in profit-taking from the massive rally. Worth pointing out, however, that on-chain data didn’t flag any excessive sell pressure on exchanges. 

Spark crypto’s 300% windfall

Source: SPK/USDC, TradingView 

Some of the altcoins extended their last week’s rally into the new week as Bitcoin dominance declined to 60%. For SPK, the broader surge boosted it from below $0.05 to $0.18 – A 300% upswing in less than three days. 

From a technical perspective, the 4-hour chart showed the RSI hitting overbought zone. This, while the capital inflows waned slightly as shown by the CMF (Chaikin Money Flow).

In other words, the strong uptrend momentum seemed to be beginning to lose steam. 

If the rally extends itself, key price areas worth tracking were located at the immediate Fibonnaci extension level at $0.28 or the 50% level above $0.10 (shaded white). 

The latter ($0.10) could be a key support in case of a pullback, and $0.28 could be the upside target if the explosive surge continues. However, a dip below $0.10 could reinforce bears’ market edge and dent the bullish momentum. 

Low selling pressure on exchanges

Finally, Santiment data underlined very low selling pressure on exchanges despite a record 491 million of the supply (red) being in profit. 

This week alone, supply on exchanges dropped from 28 million to -150 million. In other words, a huge supply was pulled from exchanges, perhaps to hunt for staking rewards.  

Source: Santiment

Also, one of the whale wallets (with 100 million SPK tokens) that was aggressively accumulating this week was yet to offload its stash as of press time. 

This could reinforce a possible easing of a likely pullback near $0.10 amid muted selling pressure on exchanges and from key whales. 

Source: Santiment