Microvast Holdings Inc (NASDAQ:MVST) shares jumped over 40% in premarket after it announced a breakthrough in its True All-Solid-State Battery (ASSB) technology. Technical analysis shows strong support for the stock performance.

What Happened: Unlike conventional batteries, Microvast's ASSB eliminates liquid electrolytes, enabling high-voltage operation and simplifying system architecture.

"Our solid-state battery innovation represents a significant leap forward in addressing real-world safety and efficiency challenges," stated CEO Yang Wu.

The press release lists the new battery's key features, which include enhanced safety and efficiency along with bipolar stacking architecture, which helps achieve high voltages unattainable by liquid-based batteries. The proprietary all-solid electrolyte separator in the battery ensures conductivity and structural stability.

Why It Matters: Microvast's ASSB technology is poised to transform various sectors according to the company. This technology will be helpful in data centers, electric vehicles, and advanced robotics, as it offers customized solutions with high energy density and improved safety.

Microvast was up 44.39% at $2.7 in premarket during the publication of this article. It ended 10.95% lower in Wednesday's session. The shares have risen by a staggering 345.24% over the last six months and 61.21% over the last year. Nasdaq Composite underperformed the stock as it rose 4.46% in the last six months and 30.1% over the last year.

Technical analysis of daily moving averages with the help of Benzinga Pro shows strong support for the stock in both the near and long term.

Mirovast's shares in premarket trade were above its eight-day simple moving average of $2.29 and its 20-day average of $1.87 apiece, showing strong support in the near term.

The 50 and 200-day simple moving averages were also below the share price at $1.13 and $0.57, respectively, suggesting a bullish uptrend.

On the other hand, the relative strength index of 62.97 suggested that the stock could be moderately overbought but still in the neutral zone.

According to Benzinga, MVST has a consensus price target of $4.4 per share based on the ratings of five analysts. The highest price target out of all the analysts tracked by Benzinga is $8 apiece issued by Cantor Fitzgerald as of Dec. 18. The lowest target price is $3 per share issued by HC Wainwright & Co. on Nov. 18.

The average recent price target between HC Wainwright & Co. and Janney Montgomery Scott implies a 24.22% upside for MVST.

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Image courtesy of Microvast