FCC clears SpaceX direct-to-phone service: Can ASTS hold support?

Traders Union
All News
Stocks
AST SpaceMobile drops 10.42% today

Highlights

The FCC approved SpaceX to offer a direct-to-phone satellite service to unmodified smartphones, introducing direct competition for AST SpaceMobile in its key market.
AST SpaceMobile completed its first integration test with TELUS in Canada and reported Q1 2026 revenue of $14.7 million.
Shares of AST SpaceMobile closed at $50.97, down 10.42% on the day, with technical signals showing continued bearish momentum and a short-term trading range projected at $43.39 to $58.55.

Competitive pressure escalates as SpaceX enters direct-to-phone market

AST SpaceMobile faces a more challenging outlook after the FCC cleared SpaceX to introduce a direct-to-phone satellite service, which permits unmodified smartphones to connect via satellite and bypass mobile carrier partners, according to Finance Yahoo. This regulatory development intensifies direct competition in ASTS's core market and may weigh on future adoption prospects. Alongside this, AST SpaceMobile has completed its first integration test with TELUS on terrestrial and space-based network integration in Canada and reported Q1 2026 revenue of $14.7 million, as noted by Simplywall, though price action has remained under broader selling pressure.

Sustained bearish signals as technical barriers cap recovery

On the hourly chart, the price remains below the MA-20 at $55.33 and MA-50 at $57.71, with the daily MA-200 overhead at $80.75. The Ichimoku Kijun at $55.53 serves as the nearest resistance. Downside is further supported by MACD and ADX signaling Sell, while RSI is at 34.75 and CCI is also negative; Bull/Bear Power indicates an oversold environment. Stochastic RSI and Awesome Oscillator are neutral, reflecting some hesitation despite persistent selling pressures.

Downward volatility risk persists as consolidation range narrows

In the short term, ASTS is expected to consolidate within a volatile range of $43.39 to $58.55. The likelihood of a further downside move is very high, while the chance of an upward reversal remains low. A breakout above the resistance at $55.53 could temporarily relieve selling pressure, while a drop below $43.39 would indicate growing downside momentum and raise the risk of new multi-day lows.

Viktoras Karapetjanc, Senior Analyst at Traders Union, sees regulatory moves like the FCC’s approval for SpaceX as a material shift in competitive dynamics for AST SpaceMobile. He notes the confirmed revenue and early integration progress, but believes sentiment remains fragile given the market’s focus on structural headwinds and increased rivalry. The analyst maintains a constructive outlook if ASTS can defend key support and prove operational progress. "If ASTS shows continued technical execution alongside market adaptation, there’s room for recovery once competitive overhangs clear up."

Earlier, analysts noted that AST SpaceMobile was contending with persistent downside risk due to technical weakness and intensifying regulatory and competitive pressures. The current article strengthens this bearish outlook, as the FCC's approval for SpaceX's direct-to-phone service adds significant competitive headwinds and places increased focus on the key level of $43.39 as immediate downside risk.

Source of Data: ASTS 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.