SoFi stock falls around 3.5% as Muddy Waters raises accounting concerns

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Sofi slides 3.59% today to $17.06

Highlights

Muddy Waters Research reaffirmed its short position on SoFi due to accounting concerns, maintaining fundamental downside pressure.
SoFi expanded its product suite with Small Business Loans of up to $250,000 and launched the SoFi Social 50 Income ETF.
SoFi trades below major moving averages with intraday oversold indicators, a consolidation range of $16.49 to $17.63 likely in the near term.

Short seller persistence and insider activity reinforce negative market tone

Muddy Waters Research reiterated its short position against SoFi, citing concerns about the company's accounting practices. SoFi recently expanded its offerings by launching SoFi Small Business Loans, providing fixed-rate loans up to $250,000, and introduced the SoFi Social 50 Income ETF. Insider Kelli Keough completed the sale of 10,954 shares through a pre-arranged plan, with 367,728 shares retained after the sale, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes that SoFi remains under pressure after Muddy Waters reaffirmed its short position and flagged accounting weaknesses. He observes persistent weakness with the price unable to reclaim any major moving average, a clear technical warning. Kharitonov is skeptical of recent growth initiatives as they are overshadowed by insider selling and negative sentiment. He underlines that the oversold technicals and lack of trend conviction add to the risk of further downside. "Investors should remain defensive as both sentiment and technicals work against a meaningful short-term recovery," he says.

Viktoras Karapetjanc, expert at Traders Union, views SoFi's new product launches as signs of underlying business drive. He points to the recent selloff as sentiment-driven rather than structurally damaging. Karapetjanc thinks the narrow volatility band suggests the bullish structure remains intact, offering room for an upside rebound if buying pressure returns. "Further growth is expected once the market digests headline risks and focuses on SoFi’s expanding service range," he says.

Sholanke Dele, market strategist, emphasizes the cloud cast by ongoing accounting concerns and weak trend momentum. He finds the dominance of sellers alarming given the lack of clear institutional support. Dele states, "Without a shift in sentiment or credible positive catalysts, SoFi is unlikely to see a sustained recovery near term."

Price pressured below moving averages amid mixed momentum signals

SoFi is trading below all its moving averages, with the current price under the MA-20 ($17.89), MA-50 ($17.07), and MA-200 ($21.73). This setup reflects sustained downward pressure across short-, medium-, and long-term timeframes, with $17.07 acting as the near-term ceiling and $16.97 as the immediate floor. On the momentum front, MACD and Hull Moving Average show a strong buy bias while the Average Directional Index (ADX) at 14.83 indicates the trend lacks conviction. RSI and Stochastic RSI are close to oversold, and the Commodity Channel Index (CCI) at -58.83 issues a sell signal. Bull/Bear Power (BBP) at -0.06 signals sellers are in control intraday. Despite strong buy signals from some oscillators, selling pressure is apparent as the stock trades near session lows after a downside gap.

Previously it was reported that SoFi Technologies was experiencing ongoing bearish momentum, as mixed technical signals and insider selling reinforced a cautious outlook. With new selling pressure following the Muddy Waters short report and technical weakness persisting, traders should monitor for a potential break below $16.97 or a rebound toward $17.63 as near-term direction takes shape.

Source of Data: SOFI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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