Spark confirms bullish breakout as smart money and whale accumulation intensifies

Spark rallied for the second straight day, breaking out of a key resistance level as smart money and whale accumulation continue to build momentum.

Spark (SPK) surged to an all-time high of $0.1206 on July 23 afternoon Asian time before stabilizing slightly lower at $0.1149 at press time. It is up 94.3% over the past day, which extends its weekly gains to nearly 275%. 

The token’s rally occurred in a high-volume environment, with its trading volume exceeding $1.46 billion, more than triple that seen the previous day.

Demand from derivatives traders supported the surge, as CoinGlass data shows open interest in its futures market reached an all-time high of $176.8 million with a long/short ratio above 1. This indicates that more traders had opened long positions and were betting on further price gains.

What’s driving Spark’s rally?

Spark’s recent rally has been fueled by several key factors.

First, data from DeFiLlama shows whales and smart money have continued to accumulate Spark. Whales have purchased 3.9 million SPK tokens over the past 30 days, increasing their total holdings to more than 10.4 million. 

Meanwhile, smart money wallets, typically known for their strong track record in identifying early opportunities, have boosted their exposure by 250% to over 56,000 tokens during the same period.

When large players position themselves heavily in an asset, it often draws in retail traders and momentum buyers, helping to drive the related assets’ price higher.

Second, Spark balances on exchanges have fallen by 37% over the past month, now standing at approximately $357 million at the time of writing.

A drop in exchange balances typically indicates that investors are moving tokens into self-custody or staking them within protocols, reducing the readily available supply for trading. This supply squeeze can create upward pressure on price, especially when paired with rising demand, as seen with the recent surge in whale and smart money accumulation.

As previously covered on crypto.news, DeFi on Spark has been booming lately. The total value locked in the protocol hit an all-time high of $10.48 billion on Wednesday after surging over 40% from the previous month to become the fifth largest player in DeFi.

When TVL rises, it’s often a sign that increased platform utility, which subsequently increases demand for the protocol’s native token and drives its price higher.

Descending triangle breakout

On the daily chart, SPK has broken above the upper boundary of a descending triangle.

A descending triangle usually signals that prices might keep falling, as it forms with lower highs and a flat bottom. But if the price breaks above the top line instead, it can mean the trend is changing, and buyers are starting to take control, pushing the price higher.

As visualised in the chart above, SPK’s price has moved above the upper trendline of the pattern, which confirms the bullish reversal.

The token has also reclaimed the 20-day exponential moving average at $0.050, a level now acting as dynamic support.

Hence, if the price continues to hold above the 20 EMA, SPK could retest the top of the previous wick near $0.125.

A successful breakout above that level would likely open the door to a rally toward $0.1840, a move that would mark a new all-time high and 60% above the current level.

Conversely, if bears regain control and push the price back below the 20 EMA, SPK could decline toward $0.056. A deeper correction may bring the price down to $0.040, a historically significant support level that previously anchored the market during prior selloffs.