Price Analysis

Here’s Why Investors Are Revenge Shorting This Meme Coin Even After 30% Crash

The SPX meme coin has the highest number of newly opened short positions in the last 24 hours. Discover why traders are betting on more dips.
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Here’s Why Investors Are Revenge Shorting This Meme Coin Even After 30% Crash

Highlights

  • Traders have increased short positions on the SPX meme coin after the price fell by more than 30%.
  • This price decline led to renowned crypto trader Murad posting a $3.3M loss on their SPX holdings.
  • Analyst Arthur Hayes has also stated that SPX is entering a free fall.

Meme coins have been the biggest victim 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. 

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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. 

Crypto Derivatives Visual Screener

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.” 

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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.

Murad Crypto Holdings

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

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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. 

SPX/USDT: 4-hour Chart

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.

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Frequently Asked Questions

Why are traders shorting the SPX meme coin?

Traders have increase short bets on SPX amid massive losses and a lack of any catalyst that may fuel a price recovery.

Are traders making losses after SPX price dropped by 30%?

Traders have made losses after the SPX meme coin crashed. Renowned trader Murad has suffered a $3.3M loss on their SPX holdings.

Can SPX price recover?

The SPX meme coin price may fail to recover as the rising number of short positions indicates a negative market sentiment and lack of investor confidence that the price will recover.
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muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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