Key Takeaways
Meme coins have had a rough start in 2025, falling by nearly 70% year-to-date. The sharp downturn seems reactionary since meme coins outperformed the rest of the market by a wide margin in 2024.
Now, signs of a revival are emerging. March has seen a recovery, led by SPX and FARTCOIN. The former’s price movement is especially impressive since SPX has cleared several important resistance levels, clearing its way to return to its all-time high.
Considering that, let’s analyze the price action and see what lies ahead.
SPX Price Breaks Downtrend
The daily analysis shows that the SPX price fell under a descending resistance trend line after reaching its all-time high of $1.77 on Jan. 19.
The downward movement culminated with a low of $0.25 on March 11, which amounted to an 85% drop from the high but was not a new all-time low.
SPX has shown impressive strength to rebound since the lows, breaking out from the trend line on March 19, 59 days after its creation.
Today, the SPX price is attempting to reclaim the $0.60 horizontal support area. Doing so would be extremely positive for the bulls since the area has acted as support for several months.
Technical indicators support this breakout. The Relative Strength Index (RSI) is increasing and just crossed above 50.
The Moving Average Convergence/Divergence (MACD) generated a bullish divergence and is nearly positive.
The daily time frame chart suggests that SPX will close above $0.60 and continue increasing toward its highs.
Corrective Rally
While the price action and indicators give a positive SPX prediction, the long-term wave count is bearish.
Since inception, the count shows a completed upward A-B-C structure (black) and a downward five-wave decline.
If accurate, this suggests the long-term trend is bearish, and SPX’s upward movements are corrective rallies.
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In the context of the current increase, the count states that the ongoing increase is an A-B-C corrective structure, after which the SPX price will fall again.
However, the count still predicts more upside before the trend reverses. The SPX price could be in wave A of an A-B-C structure that takes the price to the 0.618 Fibonacci retracement resistance at $1.18.
Afterward, the SPX price could begin another downward movement, taking it to new lows.
Failure to break out from the $0.60 resistance area will not put this count at risk. Rather, it will signal the completion of wave A and the start of the corrective wave B.
SPX Can Break $1
After a significant correction, the SPX price regained footing, reclaiming two important resistance levels.
Even though the upward movement could be corrective, the SPX price can increase until $1.18 before possibly beginning another decline.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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