Spark Explodes: Breaks Resistance, Soars to New Highs Amid Whale Frenzy

Spark is on fire, rallying for the second straight day and smashing through a key resistance level as whales and smart money gobble up more of this red-hot token.

Spark (SPK) rocketed to an all-time high of $0.1206 on July 23 afternoon Asian time before settling slightly lower at $0.1149 at press time. It's up a mind-blowing 94.3% in just 24 hours, extending its weekly gains to a jaw-dropping 275%.

This rally isn't happening in a vacuum - it's fueled by a tsunami of trading volume, with over $1.46 billion changing hands, more than triple the previous day's action.

Derivatives traders are piling in too, with CoinGlass data showing open interest in SPK futures hitting a record $176.8 million and a long/short ratio above 1. That means more traders are betting big on even more price gains.

What's Driving Spark's Explosive Rally?

Spark's rally is no accident - it's the result of several key factors coming together in a perfect storm.

First, whales and smart money are snapping up SPK like it's going out of style. DeFiLlama data shows whales have bought 3.9 million tokens in the last 30 days, bringing their total stash to over 10.4 million. Meanwhile, smart money wallets, known for their Midas touch, have boosted their exposure by a staggering 250% to over 56,000 tokens in the same period.

When the big players go all-in on an asset, it's like a beacon for retail traders and momentum buyers, sending the price into the stratosphere.

Second, Spark balances on exchanges have plummeted by 37% in the last month, now sitting at around $357 million. When investors start pulling tokens off exchanges and into their own wallets or staking them, it reduces the supply available for trading. Combine that with the surge in whale and smart money buying, and you've got a recipe for a price explosion.

DeFi on Spark is also booming, with the total value locked in the protocol hitting a record $10.48 billion on Wednesday after skyrocketing over 40% in a month. That makes Spark the fifth biggest player in DeFi. When TVL goes up, it means more people are using the platform, which drives up demand for the native token and sends its price even higher.

Descending Triangle Breakout: Bulls Take the Reins

On the daily chart, SPK has busted out of a descending triangle pattern, signaling a major shift in momentum.

Descending triangles usually mean more downside is coming, with lower highs and a flat bottom. But when the price smashes through the top line instead, it's a sign that the bulls are taking charge and pushing the price higher.

As you can see in the chart, SPK's price has blasted above the upper trendline of the pattern, confirming a bullish reversal in no uncertain terms.

The token has also reclaimed the 20-day exponential moving average at $0.050, which is now acting as a springboard for further gains.

If SPK can keep holding above the 20 EMA, it could be eyeing a retest of the previous high near $0.125.

Break above that, and it's off to the races, with a potential rally to $0.1840 - a new all-time high that would be 60% higher than where it's at now.

But if the bears manage to claw back control and drag the price below the 20 EMA, SPK could slide back to $0.056. A deeper correction might even take it down to $0.040, a level that's been a solid floor during past selloffs.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.