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- Snap stock gained 9.48% on a single day while it is up by 14% at time of day high
- Snap stock price see turnaround after Snapchat launched My AI chatbot integrated with ChatGPT
- Snapchat shares soared after Lawmakers put efforts to ban TikTok in the US
Snap Stock price (NYSE: SNAP) gained 9% on intraday and up by 15% on the weekly basis shows that something big has happened in the current month which pushed Snapchat investors to buy the social media stock.
Recently, Snapchat has launched, My AI Chatbot into its social media app which is the customized version of Open AI’s ChatGPT and got huge response form its customers base. Traders and Investors also gave a positive response to this collaboration and Snap prices shot up 25% from the recent lows.
Moreover, on 8 March 2023, US lawmakers gave a push to ban TikTok in the US which has also given a boost to the Snap stock because TikTok is becoming one of the biggest competitors of Snapchat Inc.
US Senate Intelligence Committee Chairman Mark Warner told Fox News on Sunday, 5 March 2023 that he plans to introduce a bill in the coming week to allow the US to ban Chinese Technology including social media service owned by ByteDance Ltd.
Snap stock price prepares to break 8 months high?
Snap stock (NYSE: SNAP) prices have not performed well in the past 8 months and remained in the consolidation range between $8.00 to $13.00 which can be interpreted as the long term base creation.
However, the Snap stock is still inside the range but the recent rally has created a hope that Snap stock is preparing for the massive breakout in coming months. Meanwhile the Snap price is trading above the 50 day EMA indicating that the short term trend is working in the direction of bulls and any minor correction will have high probability of bouncing back from the support levels. However, if the prices continued the upward momentum the $13.00 will act as an immediate hurdle level for the bullish traders.
Snap stock downside is limited?
On the other hand, If Snap prices again faces rejection from the supply zone then $10.00 will turnout to be an important support level for the short term traders as well as investors.
Moreover, the buying volume has witnessed a spike that shows that any short term correction will be easily absorbed by the responsive buyers. The technical indicators of the Snap stock like MACD have generated a fresh positive crossover indicating more upward momentum is possible in coming days. The RSI at 62 sloping north denotes more room for upside is open for the bulls.
Conclusion
Snap stock price is down by 61% on a yearly basis and has not been able to perform well in the previous year. However, The recent development in Snapchat like AI chatbot with ChatGPT integration and US Lawmakers effort to ban TikTok has been taken positively by the investors. Therefore we might see an outperformance in snap stock in the coming months.
Snap stock – Technical levels
Resistance levels : $13.00 and $16.00
Support levels : $9.68 and $8.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
