Is Sofi Stock Good for Long-Term Pick?

SoFi Technologies Inc. (SOFI) stock price is in a short-term correction phase and fell 27% in August 2023. (NASDAQ: SOFI) are forming a bearish pattern and buyers are struggling to defend the $8.00 level.

SoFi stock slipped below the 50-day EMA which showcases the initial signs of bearish trend reversal. However, the 200-day EMA slopes upward and is likely to act as an immediate support for the bulls.

At the end of July 2023, SoFi Technologies stock hit a 52-week high of $11.70 after the release of earnings.

Sofi share prices surged 19% in a single day and created a positive hope for the long-term investors. Moreover, the buying volume also surges which increases the reliability of upside momentum.

Buyers in Sofi stock tried to hold the $11 level but unfortunately, sellers took control and prices faced rejection. Later, slowly, the correction in SOFI shares continued and prices began to decline by forming lower lows.

Presently, Sofi stock price is near the 2-month low and buyers are trying their best to defend $8.00. SoFi stock (NASDAQ: SOFI) closed the previous session at $8.29 with an intraday rise of 2.09%. The market capitalization stands at $7.88 Billion.

Can SoFi Technologies Inc. Stock (NASDAQ: SOFI) Hold $8.00?

SoFi Technologies Inc. stock price (NASDAQ: SOFI) is near crucial support and entered into a narrow-range consolidation.

SOFI stock prices have corrected a lot so bears are losing the downside momentum. Responsive buyers seem to be active near the $8.00 level and are trying their best to rebound.

Till the Sofi shares hold the $6.55 level, the probability of bounce back remains high. However, the stock prices will gain momentum when buyers are able to break the $10.00 hurdle. Till then, it is expected to consolidate for some more time.

SOFI Stock Negatively Affected by Broader Market Sell-Off

SOFI stock (NASDAQ: SOFI) did not perform well in August 2023. The broader market indexes Dow Jones, S&P 500, and Nasdaq Composite have also traded with a bearish bias.

It negatively affected the share prices of SoFi Technologies and tech companies’ stocks. However, if the correction in Sofi shares continues and prices drop below $6.55, then more downside will open.

Conclusion

SoFi Technologies Inc. (SOFI) stock price is in a short-term correction phase and fell 27% in the current month. However, the Sofi shares trading near the demand zone and correction zone seems to have taken a halt.

Technical analysis suggests Sofi stock prices look fairly valued and might be a good pick for long-term investment.

Technical Levels

Resistance levels: $10.22 and $11.70
Support levels: $7.65 and $6.55

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 his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing