SoFi Technologies Inc.’s stock (SOFI) price sank in the aftermath of Silicon Valley Bank (SVB) collapse. To halt panic sell-offs, the CEO bought some stocks. SoFi CEO, Anthony Noto bought $240,000 worth of stock in the financial service platform. Noto purchased 45,000 shares of SOFI at an average price of $5.3936. The CEO bought shares to counter the selling pressure and create a positive outlook for SOFI investors.
Earlier, when SOFI stock price displayed a drop due to the meltdown of SVB, Noto purchased 180,000 shares, amounting to $995,000, at an average price of $5.5283. Till date, Noto has bought nearly $1.24 million shares in SoFi Technologies totalling the two purchases made this month. With increased investment by the management, investors may maintain confidence levels in the fintech company.
After SVB Collapsed, SoFi can Expand
SVB, which was taken over by U.S. regulators, sent shock waves across the economy after its collapse, triggering a liquidity crunch. Many banks, big or small, saw their stocks losing some gains. However, it may also provide them with an opportunity to establish a stronger foothold in the lending sector.
Amid inflationary markets, fintechs like SoFi can prove to be catalysts that help make money management easier and also keep the lending cycle functional. With the FED rapidly raising interest rates to curb inflation, a strong banking system is essential for long term stability. SoFi Technologies can invite more clients as now key big players are out of the lending game.
SOFI Stock Price Analysis
SOFI stock price is about to enter the buyer-active zone after retracing from the support at $5.20. The volume indicates volatility for SoFi, as buying and selling occurs simultaneously. The price may display a gradual rise, with $8.00 as the target. SOFI stock price escaped the trendline, and fell to the support.
Fib retracement levels show price to move in the lowest level. Once the SOFI stock price breaks out of the resistance near $6.15, it may surge up to $8.00. The RSI moves parallel to the floor range, indicating seller dominance. The MACD records seller bars as the lines form a negative divergence. Essentially, the indicators are showing that the sellers are overwhelming the buyers, but could soon flip in favor of the bulls.
Conclusion
SOFI stock price may soon witness a rally and take advantage of the void created in the lending industry. Holders can trust the support near $5.20 and watch for a break-out near $6.15. The rise may be staggered but once established, can pave an upward path for SoFi Technologies.
Technical levels
Support levels: $5.20 and $4.80
Resistance levels: $6.15 and $8.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/20/sofi-stock-price-may-shoot-up-ceo-noto-scooped-up-1-24m-shares/