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- 1 Snap price closed at $9.72 while seeing an increase of +0.31% during the intraday session.
- 2 Snap price has positively crossed 20 and 50-day EMA.
- 3 The Year To Date return of SNAP is 6.23%.
The bullish trend for Snap began at the start of 2023, pushing the price from the low of $8.69, causing a rise of approximately 46%. The uptrend helped create a yearly high at the $12.67 level. The price corrected the move, causing a downfall of roughly 22% and forming support at the $9.80 level. Snap price is currently headed toward the support-turned-resistance of $9.80.
Snap consolidated between the $9.80 and $11.80 range, and recently, price did break out in a downward direction. Snap price melted down straight to the $7.90 level. There was a gap formed amidst the breakout.
Price gained bullish momentum to fill the gap and rise above the immediate resistance of $9.80. This has been the third consecutive day of gains for Snap price.
Effects of Quarter 1 Report Of Snap
Shares of Snap plunged after the release of the Quarter 1 earnings report, which was not so good. Snap inc is not able to do well with Ad revenue, while Meta platforms did well with ad revenue showing strength. Snap saw sales down on a Y-o-Y basis.
The revenue for the first quarter turned out to be $988.61 Million, while consensus estimated it to be $989 Million. The net income was $328.67 Million, far worse than the last quarter. Consensus estimated earnings per share of -0.23, but Snap reported EPS of -0.21, a surprise of 0.02(6.84%).
Snap is also trying to enhance its Augmented Reality (AR). Snap has also launched Snapchat++ services which can be a growth catalyst in the long run. It was launched less than a year ago at $39.99 per year for premium features and currently has 3 Million subscribers.
Will Snap Price Retest Yearly Highs?
RSI traded at 54.98, indicating bullish momentum in the price and chances of wrecking the immediate resistance of $9.80. Chaikin money flow score is 0.30 suggesting strength in the market and high bullish sentiment.
Snap price has crossed above the 20-day SMA of the Bollinger and is headed toward the upper band, which resides at the $10.50 resistance level. If the price can break above the resistance of $9.80, the price can quickly move up towards the $10.50 level.
Conclusion
Snap’s market structure and price action are currently bullish, but the analysis for this year declined due to the Quarter 1 report, which did not impress the investors. The price target for 2023 has also dropped.
The earning report has affected the future valuation of the company. The technical indicators are bullish at the current moment. Investors will look forward to the 2023 price chart.
Technical levels:
Major support: $7.90 and $8.80
Major resistance: $10.50 and $11
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
