SOS Stock Soars Closer to Key $1 Level Despite Broader Crypto Plunge

Today has been one other attention-grabbing day for crypto mining firm SOS (NYSE:SOS). The value motion of SOS inventory truly took shares close to $1 in afternoon buying and selling, surging to an intraday excessive above 97 cents. While SOS has given up a few of these beneficial properties, this inventory stays greater than 15% greater over yesterday.

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We lined this rally in SOS inventory earlier this week, as shares actually began to take off on Wednesday. Indeed, proper now, traders seem to be eager on discovering distinctive alternatives available in the market. SOS is an organization that’s match this profile for a while.

That’s as a result of SOS is a crypto-related firm, engaged in mining, blockchain-based insurance coverage and safety administration. As the costs of cryptocurrencies have fluctuated, so too has SOS inventory. SOS additionally stays one of many most-shorted corporations on Wall Street. With this in thoughts, retail traders have been paying shut consideration.

There’s additionally one different issue driving investor curiosity proper now…

The $1 Level Isn’t Just a Psychological Threshold

For many traders, psychological thresholds, or what technical merchants refer to as ranges of resistance, will be essential. For SOS, the $1 stage is much more so.

That is as a result of below $1 per share, SOS is in non-compliance with the New York Stock Exchange. The firm not too long ago received a non-compliance letter from the NYSE final week, to this impact.

Such a letter will be anticipated. Stocks should preserve a sure value stage to encourage liquidity and security for traders. Thus, the battle between bulls and bears on SOS inventory seems to be heating up. Why? A reverse inventory cut up or different unfavorable measures could possibly be worthwhile for brief sellers. Bulls appear to be holding their floor properly, trying to pressure a squeeze.

Whether SOS inventory continues to transfer markedly greater above $1 per share stays to be seen. However, this battleground inventory is one many traders will need to placed on their watch lists proper now.

On the date of publication, Chris MacDonald didn’t have (both straight or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.

https://investorplace.com/2022/02/sos-stock-soars-closer-to-key-1-level-despite-broader-crypto-plunge/

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