Spark crypto price continued its downward trend as sentiment in the cryptocurrency industry weakened.
Summary
- Spark token price continued its strong downtrend on Friday.
- The SPK staking inflows continued and hit 137 million.
- Whales and smart money investors have continued to accumulate.
Spark (SPK) token fell to $0.082, its lowest level since July 29 and 55% below its highest point in July. Its market capitalization has dropped from a peak of $188 million to $127 million.
Whales are buying SPK as staking inflows surge
Spark’s price declined amid ongoing weakness in the crypto industry, with the combined market cap of all coins falling to $3.9 trillion.
Still, its strong fundamentals will likely help it bounce back in the near term. Data on its website shows that more users are staking their SPK tokens. There are now 4,400 users who have staked 217.13 million tokens worth over $18 million.
Soaring staking market capitalization is a sign that investors are optimistic about a cryptocurrency and are willing to hold it for the long term. Some of the investors allocating capital to Spark are whales and smart money participants. Nansen data shows that whale holdings jumped by 62% in the last 30 days to 11.28 million.
Smart money investors now hold 3.63 million SPK tokens, a 530% monthly increase. These participants are often more sophisticated than ordinary retail investors.
Spark is also seeing increased activity as demand for lending products grows. TokenTerminal data shows that total deposits have jumped to a record high this year, with momentum still building. Spark’s savings platform now holds $2.4 billion in assets, a figure that continues to grow.
https://twitter.com/tokenterminal/status/1955678343182860530
Spark’s total value locked has also climbed, reaching a record high of $8.35 million. This growth has led to increased network fees. The platform has generated $85 million in the last 12 months and $7 million in the last 30 days.
Spark crypto price technical analysis
The four-hour chart shows that SPK has slipped from $0.1350 on Aug. 4 to $0.082. It has formed a double-bottom pattern at $0.082, with its neckline at $0.1350.
The MACD indicator has started to form a bullish divergence pattern, while the Relative Strength Index has moved to the oversold level.
Therefore, the SPK price will likely rebound and possibly retest the neckline at $0.1350, which is 65% above the current level.
