Stardust Power Plummets 19.66% Amid Sector-Wide Turbulence: What's Fueling the Freefall?

Summary
• Stardust Power (SDST) trades at $0.3113, down 19.66% from its $0.3875 previous close
• Intraday range spans $0.275 to $0.3317 amid 8.96% turnover rate
• Sector news highlights Trump administration’s $679M offshore wind funding cancellation
• Technicals show bearish divergence with RSI at 43.1 and MACD histogram -0.0026
Today’s collapse in SDST reflects broader regulatory headwinds for renewables, as Trump-era policy shifts and sector-specific funding cuts collide with technical bearishness. The stock’s 52-week low of $0.1425 looms as a critical psychological threshold.

Regulatory Headwinds Ignite Sector Panic
The Trump administration’s abrupt cancellation of $679 million in offshore wind funding, coupled with stalled permits for major projects, has triggered a sector-wide selloff. While the Renewable Energy sector’s long-term fundamentals remain intact, short-term investors are fleeing amid regulatory uncertainty. SDST’s 19.66% intraday drop mirrors broader sector anxiety, as evidenced by Nextera Energy’s (NEE) -1.46% decline. The administration’s aggressive policy reversal—targeting both offshore wind and solar—has created a liquidity vacuum, with SDST’s 4.85M turnover volume underscoring the panic.

Renewables Sector Fractured as NEE Leads Retreat
The Renewable Energy sector is fracturing under regulatory pressure, with sector leader Nextera Energy (NEE) down 1.46% despite its dominant market position. SDST’s 19.66% collapse outpaces NEE’s decline, reflecting its smaller market cap and higher sensitivity to liquidity shocks. While offshore wind projects in New York and South Korea show long-term promise, immediate-term policy uncertainty has created a flight-to-quality dynamic. The sector’s technical divergence—NEE’s -1.46% vs. SDST’s -19.66%—highlights divergent capital flows.

Bearish Technicals and ETF Positioning in a Volatile Sector
• 200-day MA: $1.60 (far above current price)
• RSI: 43.1 (oversold territory)
• MACD: -0.0019 (bearish divergence)
• Bollinger Bands: 0.376–0.425 (current price at lower band)
• Support/Resistance: 30D support at $0.4004, 200D resistance at $0.4813
SDST’s technicals paint a dire picture, with price action breaking below critical Bollinger Band support and RSI entering oversold territory. The 200-day MA at $1.60 is a distant target, suggesting long-term bearishness. With no options liquidity available, traders should focus on ETF positioning. The sector’s regulatory uncertainty demands a defensive stance, with key levels to watch at $0.275 (intraday low) and $0.3317 (intraday high).

Backtest Stardust Power Stock Performance

Immediate Action Required: Watch for $0.275 Breakdown
SDST’s 19.66% intraday drop signals a liquidity crisis exacerbated by regulatory headwinds. The stock’s technical breakdown below Bollinger Band support and 30D moving average suggests further downside, with the 52-week low of $0.1425 as a potential target. Sector leader Nextera’s -1.46% decline indicates broader market anxiety. Investors should monitor the $0.275 level for a potential short-term bottom, while policy developments regarding offshore wind permits will dictate medium-term direction. Aggressive bears may consider shorting SDST into a breakdown below $0.275, but caution is warranted given the sector’s long-term growth potential.