Asia Broadband (AABB) stock price has done well in the past few weeks as it has become highly popular among day traders. The penny stock surged to a high of $0.037 on Thursday, its highest point since May 2023. At its peak last week, it was up by over 240% from its lowest point in 2023.
Why is Asia Broadband stock soaringAsia Broadband has become one of the most popular penny stocks in Wall Street. It has joined other popular companies like Bit Brother, Canoo, and Mullen Automotive which have gained popularity among day traders.
Its volume has jumped sharply in the past few months. Data by Yahoo Finance shows that its volume on Friday stood at over 17.6 million. In the past five days, over 100 million shares exchange hands, making it one of the most active companies in Wall Street.
The most recent catalyst for the AABB stock price was the launch of its wallet as it transitioned to Digital Asset Management. This wallet makes it easy for users to store, send, and receive popular cryptocurrencies like BTC, ETH, ALGO, and USDT. In a note, Chris Torres, the CEO said:
“This launch marks a pivotal moment for our Company as we have taken a evolutionary step forward in our digital asset expansion program with our proprietary wallet.”
For starters, Asia Broadband is a company that produces precious metals like gold and silver. It also accumulates these assets as it aims to benefit from their price appreciation. Most recently, the company moved into the crypto industry, launching a mine-to-token gold-backed cryptocurrency known as AABBG. It is also working to launch Pay AABG, a cryptocurrency payment gateway.
AABB stock price forecast
The Asia Broadband stock price bottomed at $0.011 in November last year. It has now rebounded by more than 130% from its lowest point, giving it a market cap of over $81 million. The stock has remained slightly above the 50-day and 25-day Exponential Moving Averages (EMA).
However, it has now formed a bearish engulfing candlestick pattern, which is a major red flag. It will also form a three dark crows pattern if it closes in the red on Monday.
Therefore, the outlook for the stock is bearish, with the next point to watch being at $0.020, its highest swing in December. A break below that point will likely lead to more selling pressure, a move that could push it to last year’s low of $0.011.
The caution for this stock is that it could easily have a short squeeze in the coming days as cryptocurrencies continue recovering.
The post Asia Broadband: Is AABB a good penny stock to buy? appeared first on Invezz
