CarSmartt Inc (OTCMKTS: CRSM) has been on an excellent run if a 200% spike from all-time lows is anything to go by. The stock has bottomed out from all-time lows as it continues to recoup losses accrued over the past year. While the rally has come at the back of high turnover in traded shares, the lack of new catalysts threatens further upside action.
CRSM Share Price Analysis
The 200% spike came at the backdrop of no clear news that investors could use to gauge the company’s long-term prospects. With the upside action showing signs of exhaustion, the stock could be in for a major correction on the downside.A pullback from $0.03 mark appears to be on the cards as part of a correction after a spike high. Immediate support on further pullbacks is seen as the $0.02 mark. A breach of the critical support level could give short sellers a reason to continue pushing the stock lower. CRSM Daily ChartBelow the $0.02 mark, CarSmatt would be susceptible to further drops with the $0.003 seen as the next potential support level. To avert further slides, CarSmatt needs to serve new groundbreaking catalysts to strengthen investor sentiments in the stock.
What Does CarSmartt Do?
CarSmartt is a startup company with interest in the ride-sharing business. Based in Palo Alto, California, the company has developed a revolutionary ride-sharing service dubbed APP.CARSMARTT.COM through which people can share a ride or ship a package with the option of applying insurance cover.
What Next For CarSmartt?
CarSmartt has continued to power up the charts even on failing to issue updates detailing its business development. The last piece of information about the company came out late last year, as the company confirmed the signing of a licensing agreement with Canada limited liability company, CarSmatt Canada.
“On November 26, 2018, CarSmatt completed a license agreement with CarSmatt Canada, a Canada limited company who agreed to provide one million dollars in funding for the development of both short range, Uber/Lyft type ridesharing, and our current long-distance ride and package programs,” said COO Mr., Visconti at the time.
The company had at the time intimated plans to use a portion of the funds to enhance the development of its ride-sharing software application. The enhancement sought to facilitate new short-range inner-city ride programs.The Chief Operating Offer also confirmed they were in discussions as they sought to close additional car licensing agreements. The licensing agreements would have paved the way for the company to gain access to additional financing for marketing purposes.Fast forward, the company is yet to come out clear and provide clear-cut updates on the milestones achieved so far with the additional financing. It is also unclear whether the company did succeed on the launch of a new inner-city ride-sharing program.It is also unclear as to how the company is progressing with its push for value in the cryptocurrency sector. Mid last year the company did confirm that the integration of Coinsmartt’s Inc. Token into its platform. With the integration, clients would be able to make crypto payments upon reaching their final destination as part of the ride-sharing service.
“With the completion of our landing page for the new Coinsmartt’s utility token symbol “TURN, we will begin traveling the World to bring the CarSmatt ecosystem to life. After London, the company will be participating in several additional blockchain shows over the next 6 months, “commented Mr. Visconti.
Conclusion
CarSmartt finds itself in a precarious position even though it is flirting with one-year highs in the market. After the recent surge, the stock is in dire need of new catalyst if it is to continue powering higher in line with the emerging uptrend.The lack of updates reiterating ongoing and long-term plans continues to strain the stock’s sentiments in the market. The stock is currently trading at a critical technical level, below which sellers could be tempted to push the stock lower especially on the lack of updates to justify the current valuation.For investors eyeing opportunities in the stock, it would be essential to wait for further confirmation.We will be updating our subscribers as soon as we know more. For the latest updates on CRSM, sign up below!Disclosure: We have no position in CRSM and have not been compensated for this article.
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