SPK surged and then fell big dump by 25%! $0.12 has become the key support and resistance line | Spark price prediction

The DeFi platform Spark's native token SPK reached a historic high yesterday, but its rise was a flash in the pan. Following large-scale profit-taking, the SPK price plummeted nearly 25% within hours of hitting the peak. On-chain data shows a huge net outflow of $4.53 million in the spot market, reflecting that holders are accelerating their sell-off. The derivatives market is also sending warning signals—since July 21, SPK's funding rate has remained negative, indicating that short positions dominate futures trading and are betting on further price declines. Technically, the $0.12 support level has become a short-term dividing line between bulls and bears; if it is lost, it could dip to $0.11; conversely, if selling pressure can be absorbed, it may challenge $0.15 again and reclaim the previous high of $0.19.

Rise and Fall: 25% Sell-off After Historical High The native Token SPK of the Spark platform surged to a historic high yesterday, but the rise could not be sustained. Within hours of reaching its peak, the price of SPK plummeted by nearly 25%. This round of big dump was mainly triggered by holders massively taking profits, leading to a reversal of market momentum.

On-chain alert: $4.53 million net outflow + funding rate remains negative Evaluating the on-chain data of SPK can clearly capture the cooling market sentiment:

1. Significant net outflow in Spot market: According to CoinGlass data, there has been a notable surge in net outflow in the SPK spot market during today's trading session, with a total amount reaching $4.53 million as of the time of publication. The spike in net outflow indicates that more Tokens are being withdrawn from the exchange (rather than deposited), which directly reflects that holders are taking advantage of SPK's month-long rise to lock in profits and are engaging in selling, increasing downward pressure on prices and raising the likelihood of further corrections.

   

2. Derivation Short Positions Dominating: SPK futures market sentiment continues to turn bearish. Key indicator — Funding Rate has been negative since July 21. The funding rate is the fee paid periodically by both long and short positions in perpetual contracts, aiming to anchor the contract price to the spot price. Negative value means shorts need to pay fees to longs, indicating a strong bearish sentiment in the market, with more traders betting that prices will continue to fall.

   

Technical Outlook: $0.12 support level determines short-term direction SPK Spot has seen a huge net outflow combined with a持续的 negative funding rate, pointing to the fact that the Token has entered a technical correction phase. Although the growth of DeFi activities on the Spark platform may support its long-term fundamentals, short-term indicators suggest that SPK may face further downside risks in the coming trading days.

• Bearish Scenario (Downside Risk): If selling pressure persists and the $0.12 key support level is breached, the price may further dip to the $0.11 region.

• Bullish Scenario (Rebound Opportunity): If the profit-taking frenzy gradually subsides, SPK is expected to regain upward momentum. If it can effectively break through the $0.15 resistance, it may attempt to recover the **$0.19 historical high again.

  

Conclusion: Digesting profit-taking positions is key, pay attention to the $0.12 defense line for offense and defense SPK's rapid pullback after reaching a historic high highlights the extreme volatility of the cryptocurrency market and the power of profit-taking pressure. Currently, the net outflow of $4.53 million in Spot and the ongoing negative funding rate constitute a dual bearish signal, with short-term price risk skewed to the downside. On the technical front, the $0.12 support level has become a battleground for bulls and bears, and its outcome will determine whether the price dips to $0.11 or stabilizes and prepares for a rebound. Investors need to closely monitor on-chain outflow data, changes in funding rates, and the defense strength at the $0.12 price level, staying alert to short-term volatility risks, while also paying attention to the fundamental developments of the Spark platform that support long-term value.