CarSmartt Inc (OTCMKTS: CRSM) Reaches Peak, What Next?

CarSmartt Inc (OTCMKTS: CRSM) is exploding in the market after experiencing wild swings in recent weeks. Since the start of the second quarter, the stock has rallied by more than 600%, keeping up with the bullish momentum that began early in the year.

CRSM Price Analysis

The spike has come on huge turnover of traded shares an indication of strengthening investor confidence. CRSM is currently trading in a steep uptrend having skyrocketed to one-year highs. Amidst the spike, it is still unclear if the upward momentum has what it takes to continue pushing the stock up.The spike has come even on CarSmartt failing to issue substantial updates reiterating underlining developments as well as long-term prospects. The last piece of information about the Company came out late last year as CarSmartt confirmed the signing of a licensing agreement with Quebec Inc. CarSmartt Canada.CarSmartt needs to serve a new groundbreaking catalyst if it is to continue surging as has been the case for the better part of the year. A spike to the $0.08 level leaves the stock susceptible to further drops on investors using the opportunity to take in some profits after the meteoric rise. CRSM Daily ChartA lack of new catalysts could result in the stock plunging back to the $0.04 level seen as the immediate support level. Failure to find support above the $0.04 mark could result in the stock falling back to 52-week lows.

What Does CarSmartt Do?

CarSmartt is engaged in the development of the CARSMARTT.COM, used as a long distance ride-sharing application and for packages delivery in the U.S., The app is designed to connect drivers with the world’s travelers looking to make long distance trips affordable.

$1 Million Financing

CarSmartt market sentiments edged higher on the confirmation of a licensing agreement with CarSmartt Canada. Under the terms of the agreement, the Canadian entity agreed to provide $1 million in funding for the development of both short-range Uber/Lyft type ride-sharing.CarSmartt intends to use part of the funds to develop its software application to make it suitable for short-range inner-city ride programs. Part of the funds will go towards facilitating ride programs in other markets.

“CarSmartt is engaged in completing additional agreements for licensing agreements where the licensee provides CarSmartt with additional financing for marketing and where they have existing vehicles to facilitate the launch of the new inner city ride sharing program,” Mr. Vito Visconti states.

CarSmartt Canada is an ideal partner for CarSmartt as it currently boasts of a robust footprint in Canada. As of the end of last year, the Company had over 150 passenger vehicles and a limo company in Montreal.

Packages Delivery Service

Early last year, CarSmartt inked a strategic partnership with Archer Robotics and Aitheon Blockchain. Under the terms of the agreement, the trio was to collaborate on the development of self-driving cars fleet for delivering packages.It is still unclear how the project faired as CarSmartt was to help Aitheon conduct an Initial Coin Offering. The offering sought to generate the much-needed financing to fund the proposed project.With the much-needed financing, the trio was to work on a packages delivery service that uses a fleet of blockchain-operated driverless vehicles controlled by artificial intelligence.

“Aitcheson’s technology platform will power the driverless cars to arrive at the delivery location. Upon arrival, users will be notified via text with the location of the parked vehicle. When a user arrives at the vehicle to receive their package their identification will be verified, the car will unlock, and they can retrieve their package,” a statement read.

Bottom Line

CarSmartt has taken the market by storm waiting to see if the upward momentum has what it takes to support further rallies. A spike to the $0.08 level means the stock is flirting with one-year highs. However, the lack of new catalysts to strengthen investor confidence in the stock could come to bite.For the stock to continue surging, then CRSM will have to provide new updates reiterating underlining developments as well as long-term plans and prospects. For investors eyeing opportunities, it might be wise to wait for pullbacks as the stock is currently trading on the highs.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.