Lets start with the general chart analysis: Looking at ASTS on both the 5-minute and 15-minute charts, we observe a sharp rally earlier in the session, pushing the price up to the $37.08 resistance level. However, the price has since shown signs of exhaustion, with two prominent downward moves indicated by the blue arrows on the chart.
Here are some Key Levels:
Resistance: $37.08: This level represents the recent peak where the price action struggled to sustain momentum. It has acted as a significant ceiling and could continue to be a barrier if the price approaches it again.
Support: $33.00 - $34.00: This zone served as a strong launchpad during the initial rally and is likely to act as support if the price retraces further. However, breaking below this could signal a deeper pullback.
Expectations: Potential Pullback:
The chart shows potential for a pullback towards the $33.00 - $34.00 area, especially given the bearish divergence visible on the indicators and the price’s inability to maintain above the $37.08 resistance.
Bearish Scenario: If ASTS fails to hold above $33.00, we could see further downside pressure, possibly pushing the price back into the $30.00 range, where the next level of significant support lies.
Bullish Scenario: On the flip side, if ASTS manages to reclaim $37.08 convincingly, it could open the door for a retest of the $39.00 - $40.00 range, with momentum likely picking up as short-sellers cover their positions.
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