RAYA's Blackout: A 95% Intraday Collapse and the Path to Rebound?

Summary
• RAYA implodes 94.77% intraday to $0.16, erasing 92% of its 52-week high of $3.35
• Intraday range of $1.72 to $0.15 highlights extreme volatility
• Turnover surges 224% to 69.46M shares, signaling massive liquidity shift

Erayak Power (RAYA) has become the epicenter of a historic intraday collapse, plummeting from $1.65 at open to $0.15 near the session low—a 94.77% drop. This unprecedented move has wiped out 92% of its 52-week high, with turnover exploding to 69.46M shares. While the Electric Utilities sector remains stable, RAYA’s meltdown underscores a liquidity crisis unrelated to broader market trends.

Liquidity Vacuum Triggers Black Hole Move
RAYA’s catastrophic 94.77% decline stems from a liquidity vacuum exacerbated by the stock’s widening bid-ask spread and a 11.5% turnover rate. This ‘black hole’ scenario—where sellers dominate without buyers—follows a 46.41% monthly gain, suggesting profit-taking turned into a death spiral as buyers vanished. The current price of $0.16 sits 22.7% above the 52-week low of $0.15, indicating a potential floor near $0.15. With no buyers stepping in, the stock’s technicals now point to further downside to test the 52-week low.

Technical Divergence and Short-Term Bear Case
• 200-day average: 1.437 (well below current price)
• RSI: 68.26 (overbought divergence)
• MACD: 0.288 (bullish) vs. 0.245 signal line
• Bollinger Bands: 3.27 (upper) to 1.74 (lower), current price 0.16 near lower band

RAYA’s technicals reveal a bearish divergence: RSI at 68.26 (overbought) while price continues to fall. The 200-day MA at 1.437 suggests further downside to test the 52-week low of $0.15. With no options chain data available, short-term bearish positioning would require a stop below the $0.15 intraday low. The $0.16 level now acts as a critical pivot point—a break below $0.15 would validate a 6.67% drop to the 52-week low. Given the liquidity vacuum, aggressive short sellers may consider entering at $0.15 with a tight stop at $0.16 to capture the impending breakdown.

Backtest Erayak Power Stock Performance
The performance of RAYA after an intraday plunge of -95% was backtested over a period from July 21, 2020, to July 21, 2025. The strategy returned 2.30%, underperforming the benchmark significantly, which returned 57.55%. The excess return was -55.24%, and the CAGR was 0.89%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 0.01, indicating a low-risk but underperforming strategy.

Critical Floor at $0.15: Immediate Action Required
RAYA’s 94.77% collapse demands urgent position management as the stock approaches its 52-week low. With technicals pointing to a potential breakdown below $0.15, investors should consider tightening stops or initiating short positions against the $0.15 support level. While sector leader NextEra Energy (NEE) gains 0.23699803%, RAYA’s liquidity crisis remains isolated. Immediate focus should be on the $0.15 level—a break below would confirm a bearish reversal with $0.15 as the next target. Watch for the $0.15 breakdown or regulatory reaction.