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- 1 Sofi stock (NASDAQ: SOFI) fell 28% in the current month.
- 2 Sofi Technologies Inc. stock drops below the 50-day EMA with signs of a bearish trend reversal.
- 3 Sofi stock price eroded the gains generated after the release of quarterly earnings.
Sofi stock (NASDAQ: SOFI) fell 28% in the current month and formed a bearish pattern. If faced rejection from $11.70 and is continuously declining by forming lower lows.
Sofi stock price dropped below the 50-day EMA which showcases the initial signs of bearish trend reversal. However, the prices still hold the 200-day EMA which is likely to act as immediate support for the bulls.
At the beginning of June, Sofi’s stock price broke out of the $8.00 hurdle which triggered a positive sentiment. After consolidating for a few weeks, Sofi shares rallied 40% (approx.) and hit a high of $11.70.
Sofi Technologies Inc. released its quarterly earnings on July 31, 2023. It reported an EPS of -0.06 and revenue of $488.815 Million. The company succeeded to beat the EPS estimate by 8.81% and the revenue estimate by 3.14%.
Due to that, share prices reacted positively and surged 20% in a single day. However, the up move was a bull trap and buyers failed to hold the higher levels. Slow and steady Sofi stock prices reverted down and eroded the previous gains.
Will Sofi Stock decline further or bounce back?
Sofi share (NASDAQ: SOFI) price is in a correction phase but trading near to crucial support of $8.00. If formed, a bullish candle indicates buyers are active and will try their best to rebound.
Sofi Technologies’ price closed the previous session at $8.22 with an intraday rise of 1.36%. If the buyers succeed to defend the $8.00 support then the possibility of a bounce back will increase.
However, if the sell-off continues and Sofi stock drops below $8.00 then 10% to 15% more downfall is possible.
Sofi Technologies stock near to crucial support
Sofi Technologies (NASDAQ: SOFI) stock fell for 3 consecutive weeks. It returned back to its previous breakout level. The next few sessions will be interesting to see how the prices react near the support.
The technical analysis suggests prices look oversold and a relief rally may trigger any time from the lower levels.
The MACD generated a negative crossover and the histogram is also red indicating bearishness. The RSI at 39 denotes weakness but is near the oversold territory.
Conclusion
Sofi stock (NASDAQ: SOFI) is trading near crucial support. So the downside seems to be limited to $7.00. The downfall in the Sofi share might take a halt in the range between $7.00 to $8.00 and a bounce back is possible.
Technical levels
- Resistance levels: $10.09 and $11.70
- Support levels: $7.50 and $6.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
