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

Today has been another interesting day for crypto mining company SOS (NYSE:SOS). The price action of SOS stock actually took shares near $1 in afternoon trading, surging to an intraday high above 97 cents. While SOS has given up some of these gains, this stock remains more than 15% higher over yesterday.

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.
Source: Shutterstock

We covered this rally in SOS stock earlier this week, as shares really started to take off on Wednesday. Indeed, right now, investors appear to be keen on finding unique opportunities in the market. SOS is a company that’s fit this profile for some time.

That’s because SOS is a crypto-related company, engaged in mining, blockchain-based insurance and security management. As the prices of cryptocurrencies have fluctuated, so too has SOS stock. SOS also remains one of the most-shorted companies on Wall Street. With this in mind, retail investors have been paying close attention.

There’s also one other factor driving investor interest right now…

The $1 Level Isn’t Just a Psychological Threshold

For many investors, psychological thresholds, or what technical traders refer to as levels of resistance, can be important. For SOS, the $1 level is even more so.

That is because under $1 per share, SOS is in non-compliance with the New York Stock Exchange. The company recently received a non-compliance letter from the NYSE last week, to this effect.

Such a letter can be expected. Stocks must maintain a certain price level to encourage liquidity and safety for investors. Thus, the battle between bulls and bears on SOS stock appears to be heating up. Why? A reverse stock split or other negative measures could be profitable for short sellers. Bulls seem to be holding their ground nicely, looking to force a squeeze.

Whether SOS stock continues to move markedly higher above $1 per share remains to be seen. However, this battleground stock is one many investors will want to put on their watch lists right now.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/02/sos-stock-soars-closer-to-key-1-level-despite-broader-crypto-plunge/.

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