Firefly Aerospace Inc. (FLY) stock is having a strong Thursday, up roughly 6.5% as a wave of excitement sweeps through the space exploration market. The rally comes just ahead of the highly anticipated market debut of Elon Musk's SpaceX, which will trade under the ticker SPCX. Broader markets are also feeling the love—Nasdaq futures are up 1.02% and S&P 500 futures have gained 0.58%.

SpaceX IPO Triggers Sector Rally

Wall Street is gearing up for what could be one of the biggest IPOs in history. SpaceX is expected to debut with a valuation around $1.8 trillion, positioning it as the undisputed leader in the private space industry. That massive number is casting a bright halo over smaller peers like Firefly Aerospace, as traders hunt for high-growth sympathy plays in the expanding space economy.

Capital Rotates From Crypto to Space

The upcoming offering is also drawing liquidity away from other risk assets. Speaking on CNBC on Wednesday, Solana Foundation President Lily Liu noted that capital is actively rotating out of digital assets like Bitcoin (BTC) to chase these fresh equity opportunities.

"When you have a high-risk, forward-looking growth asset like that, it competes for the same capital that often flows into crypto," Liu explained, adding that "the dollars are seeking more growth, risk and yield."

Traders Eye Huge Allocation

The SpaceX offering is expected to raise approximately $75 billion, reportedly valuing the company at 80 to 90 times earnings. Crucially for individual investors, Liu noted that roughly 30% of the IPO allocation is expected to be directed toward retail investors, amplifying the speculative buzz across trading desks on Thursday.

Critical Price Levels To Watch For FLY Stock

At $34.70, Firefly Aerospace stock is still in "repair mode" on the intermediate trend. It's trading 19.2% below its 20-day SMA ($43.24) and 10.9% below its 50-day SMA ($39.21), which tells you the recent downtrend pressure hasn't fully cleared. At the same time, it's trading 11.3% above its 100-day SMA ($31.37) and 16.2% above its 200-day SMA ($30.06), so the longer-term floor has been holding even as the shorter-term trend cooled.

The moving-average structure is mixed but not broken: the 20-day SMA is still above the 50-day SMA (a bullish crossover), and the 50-day SMA is above the 200-day SMA (a bullish longer-term alignment).

FLY Price Action: Firefly Aerospace shares were up 3.86% at $34.71 during premarket trading on Thursday.