The Spark crypto price has suffered a significant reversal, erasing millions of dollars in value over the last few days. It plunged to $0.1065 on Friday, down by over 43% from its highest point during the week. This plunge has brought its valuation to $113 million.
Why Spark Crypto Price Has Crashed
SPK crypto price has crashed as BanklessTimes predicted here. There are three main reasons for the plunge. First, the token is crashing because of profit-taking among investors. It is common for a cryptocurrency or any other asset to pull back after experiencing a parabolic rise in a short period.
In Spark’s case, the decline occurred after it surged to a high of $0.1896, representing an increase of over 540% from its lowest level this month.
Second, the Spark price is dropping as the total assets in its platform have pulled back. Spark, which is a decentralized finance platform, has a total value locked of 2.19 million ETH, down from this month’s high of 2.58 million ETH.
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Third, the decline is part of the ongoing decline in the crypto market. A closer look at the crypto market shows that most altcoins have fallen in the past few days. Some of the worst laggards were the top gainers during the ongoing crypto rally, like Pudgy Penguins, Fartcoin, Dogwifhat, and Virtuals Protocol.
Finally, from a technical perspective, the ongoing Spark price crash is due to it becoming highly overbought and is now undergoing a period of mean reversion.
As the 4-hour chart shows, the SPK token’s Relative Strength Index (RSI) rose to the extreme overbought level of 90, while the moving averages were substantially higher than the moving averages.
It is common for a highly overbought asset to pull back. Additionally, mean reversion occurs when an asset retraces to move closer to its historical moving averages.
SPK Price Technical Analysis

The four-hour chart shows that the Spark price has crashed in the past few days, moving from a high of $0.1895 to around $0.10. Its RSI has moved from around 90 to the current 54.
The token is also approaching the 50-period moving average and the major S/R level of the Murrey Math Lines. Spark has also formed a hammer and a doji candlestick pattern.
Therefore, it is likely that the market will experience a relief rally soon as investors buy the dip. If this happens, the next point to watch will be the psychological point at $0.15, which coincides with the strong pivot reverse point.
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