SNAP Stock Price Pumps as Lawmakers Slice Snapchat’s Rival TikTok

SNAP stock price elevated by more than 25% after the US lawmakers prepared legislation for banning TikTok in the States. SNAP stock price saw an uplift after TikTok, owned by ByteDance, sparked concerns of data sharing with the Chinese government. The White House ordered federal agencies that they have a deadline of 30 days to remove TikTok from all devices issued by the federal government.

The SNAP stock price reflected favorable outcomes as the rising anti-China sentiment is increasing the likelihood of banning TikTok. Last week, the Republican members of the House Foreign Affairs Committee passed the DATA Act, on party lines that can be directly effective on TikTok ban in the States.

Snap Inc. (NYSE: SNAP), is a technology company with Snapchat as its flagship product. Snapchat is a virtual messaging application. TikTok

Ban in a Snap

Snap stock price shows Snapchat to be the perfect rival of TikTok, by taking advantage of the tragedy in the later company. The major arguments that lawmakers put forward against TikTok are the possibility of access to American user’s data by the Chinese government. The data access is directly related to the right to privacy and can have a hidden purpose of surveillance.

The other reason is the prospect that China could manipulate TikTok’s algorithm to gain control of the politics in the US. By controlling the most influential source of media, the Chinese government can take over the general masses and execute all plans to become the super-superpower.

SNAP Stock Price Analysis

Snap stock prices have breached the declining streak. The rise in Snap stock price was observed to span over four trading sessions, after which Snap share price faced rejection near resistance $11.94. The resistance is also the third level of retracement which earlier also posed difficulty in breaching. If Snap stock price can successfully cross the third and fourth levels, it can aim for $16.56.

The RSI shows a sudden fall after the spike, as the rally could not sustain at higher levels. The current position near the half line suggests a neutral market, which can turn overbought once the ban is executed. The MACD shows formation of a positive cross and records ascending buyer bars. The current market for Snap stock price seems highly volatile and can show extreme traits till the matter is settled.

Conclusion

Snap stock price is overwhelmed from the legal action against its rival TikTok. The Snap share saw a surge, but wasn’t strong enough to cross the higher levels of retracement. The holders of SNAP share can rely on the support near $9.50, after which it may again try to test the levels. The market for Snap share is highly volatile and can reach extremes under this influence.

Technical levels

Support levels: $9.50 and $7.33

Resistance levels: $11.94 and $13.02

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.