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Instacart Stock Price Drops Below IPO Price As IPO Mania Fades

Instacart stock has succumbed to selling pressure as the focus shifts away from the IPO. The stock of the grocery delivery company is currently trading 29% below its all-time high. The IPO investors are underwater after buying the stock at $30.

After a negative sentiment in t, US stocks appear to be in the green on Monday. On the first trading day of the week, the Nasdaq100 went up by 0.28%, while the S&P500 had gained 10 points till the final hour of trading. NASDAQ: CART once again showed a negative price action and was down 0.15% for the day.

According to Vanda Research, trading volume for newly listed companies like Instacart and Arm declined significantly over the course of the last few days. According to the research agency, the recovery in the stock market paved the way for excitement regarding IPOs.

However, investors grew wary in recent weeks, which caused the stocks of newly listed companies like ARM Holdings and Instacart to open lower on Monday.

Wolfe Research has given a “Peer Perform” rating to Instacart stock. They also gave a fair value range of $24 to $42 per share to the stock. A Needham analyst argued that Instacart is likely to face strong competition from Amazon, giving the shares a “Neutral” rating.

Instacart Stock Price Forecast

Considering the little price history of NASDAQ: CART after its exchange listing, $31.5 appears to be a critical level for the price. After working as a support, this level has now flipped into a strong resistance level. As long as the price remains below this level, the outlook on Instacart stock price is likely to remain bearish.

Analysis of Instacart stock
CART Technical Analysis

Another significant level on the chart is the $30 level, which is the IPO price. Currently, the price is trading just a few cents above the IPO price. In case of a reclaim of the $30 level, the stock price might head for a retest of the $31.5 resistance level.