The post SPX Token Price Soars, Liquidating Short Positions appeared on BitcoinEthereumNews.com.

SPX’s price rocketed by 50% during Friday’s intraday trading session. This unexpected price jump triggered a wave of short liquidations, leaving numerous short traders facing substantial losses. With the SPX token price poised to extend its gains, its short traders may face more liquidations.  SPX Short Traders Record Losses During Friday’s trading session, SPX value surged by 50%, climbing to a nine-day high of $1.55. This price rally triggered a significant amount of short liquidations in its futures market, totaling $1 million, according to Coinglass data.  Liquidations occur in an asset’s derivatives market when its value moves against a trader’s position. In such cases, the trader’s position is forcefully closed due to insufficient funds to maintain it. SPX Total Liquidations. Source: Coinglass Short liquidations happen when traders with short positions are forced to buy back an asset at a higher price to cover their losses as its value increases. This takes place when the asset’s price surpasses a critical level, forcing traders who were betting on a decline to exit the market. Notably, this might not be the end of losses for SPX’s traders as trading activity continues to climb. This is evidenced by the token’s open interest, which has increased by 137% in the past 24 hours. This has happened amid the 32% surge in the token’s value during the same period. SPX Open Interest. Source: Coinglass Open interest tracks the total number of outstanding derivative contracts that have not been settled, such as futures or options. When it spikes during a price rally like this, it signals increased market participation and confidence in the upward price movement. Therefore, if the SPX price uptrend persists, its short traders will suffer more losses.  SPX Price Prediction: Token Eyes All-Time High SPX’s 50% surge has prompted a shift in the position…

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Filed under: News - @ January 18, 2025 12:25 pm