Spark (SPK) important signal: Whale holding coin quantity increased by 57%, forming a "cup and handle pattern" approaching the overbought area.

The total Lock-up Position (TVL) in the Spark (SPK) ecosystem has surged, stimulating a parabolic price increase. As of today (23), it is reported at 0.1051 USD in the Asian early trading session, with a daily increase of over 70%, significantly rising from the low point since the beginning of the year, and the market capitalization exceeding 97 million USD.

SPK price has surged as on-chain data shows that whale users are continuously accumulating the token. Since June 23, the amount of tokens held by whale users has increased by over 57%, reaching 10.28 million. As of June 28, they hold more than 6.28 million tokens.

At the same time, savvy investors continued to increase their holdings this month. They hold over 56,300 SPK tokens, up from 16,000 last month, indicating that they expect the SPK token to continue to pump.

One potential reason for this acquisition is that SPK's fully diluted valuation is believed to be $925 million, which is significantly lower than similar tokens like Aave and Uniswap.

At the same time, the trading volume of the exchange's SPK token has decreased from last month's high of 597 million to 368.37 million. The decline in the exchange's balance indicates that investors are transferring their tokens to self-custody.

The price of SPK has also skyrocketed, with the total value locked in its ecosystem jumping from a low of $2.3 billion at the beginning of the year to a historic high of over $8.18 billion. Since being less than $50 million in 2023, the price of SPK has maintained a strong upward momentum.

All parts of the Spark network have gained market share, with the Spark liquidity layer aggregating data from USDS, sUSDS, and USDC, holding over 4 billion dollars in assets. The savings within the network exceed 2.45 billion dollars, while the assets on the SparkLend platform are close to 4.9 billion dollars.

SPK Price Analysis

The 4-hour chart shows that the SPK price has exhibited a strong bull market this month, rising from a low of $0.029 in July to $0.1017. The price has formed a cup and handle pattern with a depth of approximately 55%. If we measure the upper edge of the cup and handle at a distance of $0.0665, the target price is $0.1017, which was tested again on Tuesday.

The SPK price has reached an overbought level. Therefore, there is a risk that the token price may quickly drop to $0.066 and then recover its upward trend.

(Source: Trading View)