SpaceX stock (SPCX) surged to a premarket high near $212 on Tuesday, briefly pushing the company's market capitalization above $2.8 trillion before the shares pulled back toward $202. The rally, which lifted SpaceX to rank as the sixth-largest company in the world by market cap at about $2.52 trillion, has drawn sharp skepticism from analysts who say the move is pure speculation.
A Valuation That 'Makes Absolutely No Sense'
The spike came amid a volatile session where the relative strength index (RSI) on the five-minute chart hit overbought levels near 80, a classic sign that buying pressure had become extreme. Since the peak, the RSI has fallen to the low 40s, indicating buyer momentum is fading fast.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, didn't mince words. “We can say with certainty that this valuation makes absolutely no sense today,” she said. “People are buying SpaceX in the expectation that others will buy too and push the price higher – that’s speculation.”
Leveraged ETFs and Share Shortages Fuel Frenzy
Demand for exposure to SpaceX has outstripped supply. Leveraged ETFs tracking the stock were rushed to market, and traders cleared $1.4 billion in SPCX perpetuals on a single decentralized venue as shares disappeared from exchange order books. The share shortages have amplified price swings, making the stock even more susceptible to sharp moves in either direction.
Key Fibonacci Support Levels to Watch
After the pullback, traders are eyeing technical support levels. The 0.236 Fibonacci retracement sits at $201.23, followed by the 0.382 level at $192.86, the 0.5 level at $186.09, and the 0.618 golden pocket at $179.32. If SPCX fails to hold above $201.23, the next support zone could come into play quickly, potentially accelerating the decline.
For now, the stock remains above $200, but the rapid loss of momentum and the analyst's blunt assessment leave a glaring question hanging over the rally: how long can a stock keep climbing when even its own buyers admit it's not based on the company's business?
