Seller pressure weighs on Affirm stock: Can AFRM avoid deeper losses?

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Affirm drops 3.57% to $71.28 today

Highlights

AFRM/USD faces sustained bearish momentum as it trades below key short- and medium-term moving averages on the hourly chart.
All major momentum indicators signal seller dominance with oversold intraday conditions, reinforcing a negative short-term outlook.
Expected trading range is $67.04 to $73.25 over 2–3 days, with a 79% probability of a downside move.

Long-term support emerges as momentum signals confirm downtrend

On the H1 timeframe, AFRM is positioned below its MA-20 at $74.03 and MA-50 at $77.62, while the daily chart shows the price above the MA-200 at $66.22, suggesting a potential area of long-term support. Immediate resistance is identified at the Ichimoku Kijun level of $73.67. Momentum signals, including MACD and ADX, both remain in sell territory, confirming current downside momentum. Oversold readings from RSI (14.42), Stochastic RSI, CCI, and Bull/Bear Power indicate seller dominance during intraday trading. The Awesome Oscillator remains aligned with the established downtrend, and no notable divergences are present across the major indicators.

Downside risk prevails with limited odds for bullish reversal

Over the next 2 to 3 trading days, AFRM is expected to fluctuate within a volatility band of $67.04 to $73.25. There is a 21% probability of an upside move, while a downward move is more likely at 79%. The baseline scenario is for the price to trade sideways within this range. If AFRM breaks above the $73.67 resistance level, a bullish extension could develop; conversely, a drop below $67.04 would expose the stock to additional downside risk.

Anton Kharitonov, expert at Traders Union, notes that Affirm Holdings (AFRM) is under sustained selling pressure, with price action firmly below its key moving averages and short-term momentum indicators in bearish territory. He sees technicals as signaling seller dominance, while a lack of positive news flow removes catalysts for reversal. Downside risks are more likely, with any break below $67.04 exposing further weakness. "Until AFRM can reclaim higher resistance levels and momentum shifts, I remain cautious and expect sideways or lower trading in the near term."

Earlier, analysts noted that Affirm was well positioned to benefit from growing adoption of buy now, pay later services and expanding market opportunities. Recent price action and technical signals now suggest heightened downside momentum, making a potential break below $67.04 an important risk for traders to monitor in the near term.

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.