Digi Power (DGP) Plunges 13.28% as Earnings Anxiety, Regulatory Shifts Spur Sell-Off

November 20, 2025 – Digi Power plunged 13.28% in pre-market trading as sharp volatility emerged ahead of key earnings disclosures. The selloff intensified amid heightened risk-off sentiment across tech and energy sectors, with investors recalibrating exposure to leveraged plays following recent regulatory updates in renewable energy markets.

Analysts noted the decline aligned with technical breakdown patterns, as the stock breached critical support levels established over the previous quarter. Short-term traders accelerated liquidation amid widening bid-ask spreads, while institutional positioning data showed reduced open interest in derivative contracts. Market participants remain cautious ahead of the company's Q3 earnings report scheduled for November 27.

Positioning metrics indicate a shift in market dynamics, with put options activity surging to a 3-month high. The Relative Strength Index (RSI) has entered oversold territory at 28, suggesting potential for near-term mean reversion. However, bearish momentum indicators including the MACD histogram remain in negative territory, highlighting structural distribution pressures.

Backtesting of a mean-reversion strategy using historical volatility bands from 2023-2025 shows a 62% success rate in capturing rebounds after 10%+ declines. The model, which triggers long entries when RSI falls below 30 and volume exceeds 200-day averages, achieved an annualized return of 18.4% in simulated scenarios. Position sizing would need to account for heightened liquidity risks in leveraged names like Digi Power.