EchoStar Corp. (NASDAQ:SATS) shares are plunging on Friday after ripping higher Thursday when traders piled into SpaceX-linked names.

EchoStar owns a meaningful stake in SpaceX through its $17 billion spectrum deal, which included up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. With the IPO approaching, that stake became a major catalyst and the stock surged.

Today's move is the reversal of that surge. Fast, event‑driven rallies often attract short‑term traders who lock in gains the next day, especially when the move is tied to a single headline rather than a broad shift in fundamentals.

Yesterday's Catalyst Still Stands

The pullback does not change why EchoStar rallied. EchoStar's stake in SpaceX could become far more valuable once the IPO prices. The company received its stock when SpaceX was valued at about $400 billion.

EchoStar also has a long‑term commercial partnership with SpaceX. Boost Mobile customers will gain access to Starlink Direct to Cell through EchoStar's cloud‑native 5G core, tying the company directly into satellite‑to‑phone connectivity.

Why SATS Is Down Today

SATS is seemingly falling due to the traders taking profits after Thursday's surge and reallocating cash toward the SpaceX IPO. The core catalyst remains intact, but near‑term flows have shifted as investors prepare for the main event.

SATS Stock: Critical Support And Resistance Levels

EchoStar has slipped back under its short‑term trend markers. The stock now trades 7.9% below its 20‑day simple moving average at $126.76 and 7.3% below its 50‑day simple moving average at $125.95, which turns both levels into potential "sell the bounce" zones. The longer‑term picture is still constructive, with shares 15.2% above the 200‑day simple moving average at $101.36 and the golden cross from July 2025 still intact.

Momentum looks reset rather than broken. RSI sits at 54.08, a neutral reading that follows the overbought stretch seen in January. RSI gauges how extended a move is, and a mid‑50s print usually signals that neither buyers nor sellers have full control.

  • Key Resistance: $137.50 — a nearby ceiling that lines up with a prior pivot zone and sits above the cluster of short‑term moving averages.
  • Key Support: $116.50 — a near‑term floor around the current price area, where a failed hold could open the door to a deeper pullback toward the 100‑day and 200‑day trend region.

SATS Shares Are Sliding

SATS Price Action: EchoStar shares were down 6.41% at $119.92 at the time of publication on Friday, according to Benzinga Pro.

Read Also: Houston, We Have A Rally: Space Stocks Pop Ahead Of SpaceX Debut

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