Spark’s price rebounded on Friday, July 25, driven by a combination of factors including a decrease in token supply on exchanges, a surge in total value locked, and integration with THENA.
The Spark (SPK) token saw a significant increase of over 15%, reaching an intraday high of $0.1335, pushing its market capitalization to nearly $130 million.
One of the key drivers behind the price jump was the decline in exchange reserves, with only 382 million tokens currently held on exchanges compared to 613 million earlier in the week. This decrease indicates that investors are holding onto their SPK tokens rather than selling them off. Additionally, top investors have been accumulating Spark tokens, with holdings surpassing 9.97 billion, showing a strong interest in the token.
Furthermore, more Spark holders are staking their tokens, with over 136 million tokens staked by over 3,400 users. This trend of accumulation is likely due to Spark’s strong fundamentals in the decentralized finance space, as evidenced by its total value locked of over $7.93 billion, a 26% increase in the last 30 days.
The growth in Spark’s business extends to its various sectors, with the Spark Liquidity Layer’s assets reaching $4.4 billion, and its savings and lending total value locked standing at $2.36 billion and $4.46 billion, respectively.
The recent integration with THENA, the third-largest decentralized exchange on the BNB Chain, is expected to further boost Spark’s growth and market presence.
However, there is a cautionary note regarding the possibility of a dead cat bounce in Spark’s price. A dead cat bounce occurs when an asset experiences a temporary rebound before resuming its downtrend. Traders should closely monitor the price action to determine the sustainability of Spark’s current price rally.
In terms of technical analysis, the four-hour chart shows a significant price decline followed by a rebound, with the SPK token reaching a low of $0.09075 before bouncing back. The formation of a hammer candlestick pattern, a bullish reversal signal, suggests a potential continuation of the price rebound towards the previous high of $0.1898.
Overall, while Spark’s price rebound is encouraging, market participants should exercise caution and closely monitor market developments to make informed trading decisions.