The SPK token price is attempting to recover after a sharp correction. Both technical and fundamental factors are contributing to this.
SPK Price Hits Monthly Lows Despite Network Growth
Following its recent rally, the SPK price faced a sharp correction that pushed the token to its lowest point since July 22 at $0.080. Its market capitalization decreased from an all-time high of $190 million to $89 million.
This selloff occurred despite an uptick in fundamental factors such as staking activity and improved on-chain metrics.
Network Activity Creates Optimistic Background
The broader ecosystem of Spark continues to expand. For example, the SparkLend DeFi platform saw its total value locked (TVL) climb by over $11 million, reaching $4.69 billion. Deposits across the platform rose to $6.95 billion, and revenues accumulated to $68.41 million.
Meanwhile, total savings assets increased by $19 million in the past 24 hours, further reinforcing the notion that user activity and trust in the Spark protocol remain robust.
Technical Bounce Signals Support Retesting
Despite ongoing concerns about token dilution, a technical rebound has captured attention. In the last 24 hours, the SPK price surged by 30%, reaching $0.1010, with spot trading volume climbing to $399.09 million.
This bounce came after the token retested a key zone, now met with renewed demand.
In conclusion, despite the falling price and associated concerns over token supply expansion, the growth in network activity and technical signs of recovery may create favorable conditions for further advancement.
