• Affirm Holdings trades at $65.09 while testing critical levels that could determine its next move.  

  • A golden cross formation suggests growing momentum as buyers watch for sustained growth above resistance.  

  • Strong support levels near $48 may protect against downside risks if current resistance remains unbroken.  

Affirm Holdings Inc. ($AFRM) is trading at $65.09 after rejecting the 0.382 Fibonacci retracement level at $72 this week. The stock, down 2.12% from its recent high, is attempting to stabilize while testing crucial technical levels. Analyst Cantonese_Cat notes that its movements could shape investor sentiment amid ongoing economic challenges.  

Source: Cantonese Cat

Critical Fibonacci Levels in Focus  

The weekly chart reveals that $72 remains a key resistance level for Affirm. This aligns with the 0.382 Fibonacci retracement.  

Support is seen near $48.28 at the 0.236 level, which could limit further downside if bearish momentum intensifies. Meanwhile, higher targets include $92.64 (0.5), $112.46 (0.618), and $140.69 (0.786), which might come into play if the stock breaks above resistance.  

The stock recently broke out of an arc pattern, which suggests potential for further upside. However, whether Affirm can maintain this trajectory remains uncertain.  

Technical Indicators Point to Possible Breakout  

Affirm’s price action indicates a strong test of support after the arc breakout. The potential for a golden cross is significant.  

The 20-week simple moving average is approaching a crossover above the 50-week SMA, which often signals bullish momentum. If confirmed, this could attract attention from traders seeking sustained upward movement in the stock.  

Additionally, the stock remains supported by long-term upward trendlines, which offer stability in the $20 to $40 range during corrections. This support may help mitigate the impact of broader market challenges.  

Economic Uncertainty Clouds Outlook  

While technical indicators highlight breakout potential, Cantonese_Cat notes that recession concerns may temper expectations for the stock's upward momentum.  

The broader economic environment remains a critical factor, and Affirm must navigate these headwinds to realize its potential. Investors should also watch for strong trading volume to validate any moves above resistance at $72.  

Affirm’s performance in the coming weeks will likely depend on its ability to sustain bullish trends while overcoming broader macroeconomic challenges. Cantonese_Cat’s analysis, shared on TradingView, offers a detailed view of these pivotal levels.  

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