SoFi shares technical analysis: $14.93 support is key as downside pressure builds

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SoFi slides 4.87% to $15.94 today

Highlights

ARK Investment Management acquired 405,720 shares of SoFi Technologies for $6.8 million across two funds.
This large-scale institutional purchase increased both demand and liquidity for shares of SoFi Technologies.
SoFi stock trades below key moving averages with a 71% probability of declining toward the $14.93 to $16.95 range.

Institutional demand rises as ARK's investment meets market selloff

Cathie Wood's ARK Investment Management purchased 405,720 shares of SoFi Technologies, valued at $6.8 million across two funds on Monday, according to News Jkn Co. This large-scale institutional investment provided increased demand and additional liquidity to the market. The transaction suggests some underlying confidence from a prominent investor, though price action has remained under broader selling pressure.

Mixed technical signals persist as buyers show slight intraday edge

SOFI is trading below the MA-20 ($16.34), MA-50 ($16.72), and MA-200 ($17.51), with the Ichimoku Kijun level at $16.52 acting as immediate resistance. MACD and RSI are both neutral, as is Stochastic RSI, while CCI shows an overbought reading. ADX signals a buy, and Bull/Bear Power is positive at 0.36, indicating a slight edge for buyers intraday. The Awesome Oscillator also points to upward momentum, but the mixed signals from oscillators and the overbought CCI suggest a potential for downside correction remains.

Downside risk dominates short-term as consolidation remains likely

In the short term, the expected price range for SOFI is $14.93 to $16.95, representing a volatility band relative to current levels. There is a 71% probability of a move to the downside, while an upward move is less likely at 29%. The baseline scenario is for price consolidation within this corridor; a bullish scenario would require a decisive breakout above the $16.52 resistance, while a bearish move may unfold if support at $14.93 is lost.

Anton Kharitonov, analyst at Traders Union, notes that SoFi is under strong selling pressure despite significant institutional buying from ARK Investment Management. He sees technical weakness, with the stock trading below all major moving averages and mixed oscillator readings that point to a heightened risk of further downside. Probability for a bearish scenario remains elevated unless the price can break above the $16.52 resistance. "Base case remains for further consolidation or a move lower unless buyers reclaim $16.52 with conviction."

Previously it was reported that Ark Invest added to its SoFi Technologies position as part of a broader portfolio adjustment amid ongoing market developments. With SoFi now trading below major moving averages and facing increased downside risk, traders should watch for potential volatility around the $14.93 support level in the coming sessions.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.