Affirm stock drops 7.49% as sellers tighten grip below $68.17

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Affirm drops 7.49% today to $63.55

Highlights

Affirm secured a renewed and expanded $2.2 billion, 24-month funding commitment from CPPIB Credit Investments, enhancing its loan origination capacity.
Affirm and Stripe expanded their partnership to the UK, enabling Stripe merchants to offer Affirm’s flexible payment options from July.
Shares trade below key moving averages amid strong bearish momentum, with price expected to range between $58.93 and $68.17 as sellers dominate.

Funding deals and partnerships boost liquidity amid market selloff

Affirm Holdings announced a renewed and expanded forward-flow agreement with the Canada Pension Plan Investment Board, including a 24-month commitment of up to $2.2 billion in funding through subsidiaries of CPPIB Credit Investments Inc. This agreement delivers substantial liquidity, supporting Affirm’s loan origination and funding needs over the contract period. Stripe and Affirm also reported an expansion of their partnership into the UK, giving Stripe merchants access to Affirm’s flexible payment options at checkout starting in July. These positive developments have been recorded, though price action has remained under broader selling pressure.

Momentum gauges flash oversold as technical barriers persist

On the technical front, AFRM is trading below its MA-20 ($66.97) and MA-50 ($70.33) on the hourly chart, and remains below the MA-200 ($67.20) on the daily timeframe. The Ichimoku Kijun resistance stands at $68.36. Momentum indicators show pronounced downside: MACD and ADX confirm bearish bias, with RSI at 28.04, while Stoch RSI, CCI, and BBP are all in oversold or strong sell territory. The Awesome Oscillator aligns with the prevailing downtrend, and no bullish divergence is detected across the momentum suite.

Downside favored as rangebound pattern and weak bullish odds prevail

Looking ahead, the price is expected to fluctuate within a typical volatility band of $58.93–$68.17 over the coming sessions. The probability of an upward move is limited to 28%, while a downward break is more likely at 72%. The baseline scenario calls for continued consolidation within this corridor; a bullish outcome requires a clear breakout above resistance, while a confirmed breach of support could result in further declines.

Anton Kharitonov, expert at Traders Union, sees that recent institutional commitments and new partnerships have not translated into immediate price support for Affirm. While fresh funding and market expansion are positives, technical signals remain heavily bearish. The prevailing downtrend and pronounced selling pressure override sentiment from news flow. "Base case remains range-bound to weak; unless AFRM reclaims key resistance levels, I remain on the defensive."

Earlier, analysts noted that Affirm’s growth outlook was bolstered by expanded funding agreements and management’s focus on scaling operational flexibility, though the stock faced persistent volatility and near-term risks. With the stock now entrenched in a more pronounced downtrend despite further positive liquidity developments, traders should closely monitor for a decisive shift above resistance to signal renewed bullish momentum or prepare for additional downside if consolidation fails.

Source of Data: AFRM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.