Why Did MicroAlgo Inc. (MLGO) Plunge 11.16%?

On July 18, 2025, MicroAlgo Inc. (MLGO) experienced a significant drop of 11.16% in pre-market trading, reflecting a notable decline in investor sentiment.

Technical indicators suggest a bearish outlook for MicroAlgo. The Aroon Indicator entered a downward trend on July 11, 2025, signaling a potential strong downward move. The Moving Averages Convergence Divergence (MACD) indicator is at -0.30, further supporting a sell signal. Additionally, the 20-day and 50-day exponential moving averages are both above the current share price, reinforcing the bearish sentiment.

MicroAlgo's technical analysis consensus is neutral, with a mix of bullish, neutral, and bearish signals. The Relative Strength Index (RSI) is at 36.85, indicating a neutral stance. However, the Trend Strength Indicator (ADX) is at 7.47, suggesting a buy signal, while the Price Rate of Change (ROC) is at 6.56, also indicating a buy signal. The Commodity Channel Index (CCI) is at 2.08, which is neutral.

MicroAlgo has a short interest of 13.28 million shares, representing 74.25% of the float. This high short interest could contribute to the stock's volatility and downward pressure. The current share price is $0.65, trading in the 10-20% percentile range relative to its historical Stock Score levels, indicating a potential undervaluation.