AST SpaceMobile signs spectrum deal: Can ASTS regain strength?

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AST SpaceMobile gains 3.06% today

Highlights

AST SpaceMobile has secured a Letter of Intent with Deutsche Telekom, Orange, Telefónica, and Vodafone to jointly pursue Mobile Satellite Services spectrum in Europe.
BlueBird satellites achieved a peak download speed of 98.9 Mbps, with the next generation targeting even higher rates.
Shares of AST SpaceMobile trade below key moving averages amid prevailing selling pressure, with an expected range of $38.06 to $45.68 and a high probability of further downside.

Strategic alliances deepen regulatory prospects amid technical progress

AST SpaceMobile has secured a Letter of Intent with Deutsche Telekom, Orange, Telefónica, and Vodafone to jointly pursue Mobile Satellite Services spectrum, deepening its entry into the European space-based cellular broadband market, according to Yahoo Finance. This collaboration not only signals the confidence of Europe's largest mobile operators in AST SpaceMobile's underlying technology but also enhances the likelihood of regulatory access to key spectrum bands. Recent demonstrations of the BlueBird satellites achieving peak download speeds of 98.9 Mbps, and the next generation aiming for even higher rates, further validate the technical foundation supporting these commercial ambitions.

Bearish momentum intensifies as resistance caps short-term rebounds

On the hourly chart, ASTS is trading below the MA-20 at $42.67 and MA-50 at $45.98, while also holding below the long-term MA-200 at $79.82. The Ichimoku Kijun at $42.41 presents immediate resistance, capping short-term rebound attempts. Momentum indicators remain negative, with the MACD issuing a strong sell, ADX emphasizing continued selling, RSI positioned at 39.7, and CCI aligned with a selling signal. Bull/Bear Power is in oversold territory, while Stochastic RSI and Awesome Oscillator are neutral, pointing to a divergence between heavy momentum pressure and mixed oscillator direction.

Downside risk dominates as volatility contains potential reversals

In the near term, ASTS is expected to trade within a volatile corridor between $38.06 and $45.68. The probability of a downside move is high, reflecting prevailing bearish signals and persistent seller dominance. A bullish shift would require a decisive breakout above the $42.41 resistance, while increased downward momentum could see the price testing lower support. Typical volatility is likely to keep the stock constrained within this range barring an unexpected catalyst.

Anton Kharitonov, analyst at Traders Union, sees encouraging strategic developments for AST SpaceMobile driven by its collaboration with leading European mobile operators, but he remains cautious. Technical indicators stay negative with persistent downward momentum, and price action is constrained below key resistance at $42.41. Until the stock breaks above this level, the analyst believes downside risk prevails within the $38.06 to $45.68 range. "Unless ASTS convincingly reclaims $42.41, I remain defensive and view the recent news as positive but not enough to reverse the trend."

Earlier, analysts noted that AST SpaceMobile remained entrenched in a bearish trend despite positive developments with European operators. The current article confirms this technical weakness persists, with downside risk elevated unless the stock can break meaningfully above immediate resistance.

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.