SMX Stock Collapses 51% in Four Days Amid Panic Selling
A surge in volume and 'technical exhaustion' overshadowed the company's positive announcement on its plastics recycling technology.
Shares of SMX Security Matters PLC (NASDAQ: SMX) plummeted over 51% in a dramatic four-day sell-off, erasing recent gains and breaching key technical support levels. The collapse was fueled by what analysts described as 'technical exhaustion' and a staggering 312% surge in trading volume, signaling widespread panic selling among investors.
The severe downturn occurred despite the company's announcement that it would offer free licensing for its 'Global Plastics Passport' technology, a move intended to support the UN Plastics Treaty and promote global plastic circularity. The news, which under normal circumstances might have buoyed the stock, was completely overwhelmed by the intense selling pressure.
The market decline saw the stock break below its 200-day moving average of $2.12, a critical psychological floor for traders. According to market analysis, the sell-off was driven by a combination of bearish momentum signals, including a low Relative Strength Index (RSI) of 39.03 and a negative MACD, which prompted a wave of stop-loss orders and exacerbated the decline.
This technical breakdown presents a stark contrast to the company's underlying strategic developments. SMX's Global Plastics Passport utilizes molecular markers to trace and verify plastics through the recycling process, a system already implemented in Singapore and the ASEAN region. A key feature is the Plastic Cycle Token (PCT), which converts verified plastics into tradable digital assets, creating a financial incentive for recycling and supporting a circular economy. The company positioned the free licensing of this technology as a way to break the deadlock in UN Plastics Treaty negotiations by providing verifiable data.
Despite the stock's harrowing performance, some technical indicators, such as an oversold RSI, suggested the potential for a short-term rebound. However, analysts advise caution, noting that the immediate resistance remains fragile. The coming days are considered critical for determining the stock's trajectory, as investors weigh the company's long-term potential against the severe short-term technical damage.