How are you all? I hope you are well. Despite being a little busy all day, I took time out to see how the SPS token is doing today. Since the MEXC exchange is always in my sights, and I have been a little curious about this token for a long time, I looked at the entire chart today and wrote down some things.
I saw that the price had not fluctuated much since morning. Most of the time, it hovered between 0.00642 and 0.00647. In other words, the token was completely calm today. The 24h high on the chart was 0.006476, and the low was 0.006423. Seeing such low volatility, it seemed that no one in the market was showing much interest today. Maybe buyers are waiting, and sellers are also holding back a bit.
Looking at the moving averages, the first thing I noticed was that MA5 and MA10 were moving very close. Although the MA30 and MA60 are a little far apart, they are all in the same zone. Usually when the moving averages are converging, it is easy to understand that the price is calming down a bit before a big breakout. Whether it will be up or down, it really depends on the market, but from what I understood from looking at the chart, there is no special selling pressure to suddenly go down.
Another thing I noticed – some of the recent big candles were quite long, especially the spike that went up to 0.00677. It looked like someone suddenly entered a large order, and then it returned to normal. This kind of behaviour is usually seen in small market-cap tokens. Since SPS has a market cap of around 9-10 million, the price moves a little with each order.
Looking at the information section about the token, I realised that SPS is basically the governance token of the Splinterlands game. One problem with gaming tokens is that when the market is silent, the price is under pressure, but when a major update comes out in the game, the price suddenly jumps. This is also true for SPS. The circulating supply is about 1.5 billion, and the max supply is three billion. The supply is not very low, so if the price is to increase in the long term, the project will have to do something big on its own.
Looking at today's price movement, I think the token is in a very cautious state. There is not much power to go up, and it is not falling either. That means a clear sideways zone. Usually, big traders accumulate at such times. I personally do not expect any quick jump right now. However, looking at the current position of the chart, it seems that if the candle can close strongly above 0.00650, then a slight upward movement may be seen.
Overall, my feeling at the end of the day is this—SPS was very calm today, at a very controlled pace. There was no unusual pressure. For those who will hold long-term, now is just the time to be patient. And for those who play short-term, there was nothing much today. From what I understood from looking at the chart, the price will move in almost the same zone in the next few days, until there is a game update or market news.