SMX Stock Plunges 51.80% on Technical Exhaustion Liquidity Crunch Volume Surges 312.1%

SMX’s stock plunged 51.80% over four consecutive trading days, with an intraday decline of 54.57% on August 28, 2025, reaching its lowest level since August 2025. The sharp selloff accelerated technical exhaustion and liquidity crunches, driven by bearish momentum signals including a Relative Strength Index (RSI) of 39.03, a negative MACD of -0.113, and extreme volatility reflected in Bollinger Bands. Trading volume surged 312.1%, indicating panic selling and stop-loss triggers concentrated near critical support levels.

Structural weaknesses in the stock’s technical profile further exacerbated the decline. The 200-day moving average at $2.12 acted as a psychological floor, with a breakdown below this level risking cascading stop-loss orders. Analysts highlighted the need for caution, emphasizing that a rebound above $2.50 could rekindle long-term bullish patterns, though immediate resistance remained fragile. The market’s focus shifted to the 48-hour window for directional clarity, with key levels at $2.12 and $2.50 pivotal in determining the trajectory.

Amid the selloff, SMX unveiled a transformative molecular marking technology targeting the $38–43 billion non-packaging polymers market. The innovation aims to address gaps in the recycling system by embedding verifiable markers into plastics, enabling traceability and monetization through a Plastic Cycle Token. Early implementation in Singapore and ASEAN positions the company as a leader in circularity adoption, aligning with global sustainability priorities. This strategic move could redefine recycling economics, shifting it from a compliance cost to a revenue-generating asset.

Technical indicators on August 28 suggested potential for a short-term rebound. An RSI oversold reading and a KDJ Golden Cross signaled a possible upward reversal, despite lingering risks from negative money flows and overbought conditions in the Williams %R. Strong fundamentals, including a $1.31 earnings-per-share and 6.0% year-over-year revenue growth, underscored the company’s resilience. However, investors are advised to maintain tight stop-loss orders and await confirmation of a sustained recovery before re-entering long positions.

The selloff occurred in isolation from broader sector trends, as the Aerospace & Defense sector showed mixed performance. This divergence highlighted the idiosyncratic nature of SMX’s technical breakdown, underscoring the need for granular analysis. While short-term bearish indicators suggest trend continuation, the long-term potential of SMX’s circularity initiative remains a compelling catalyst. The next 48 hours will be critical in determining whether the decline marks a panic-driven correction or a structural shift, with key price levels offering clarity on the path forward.