Blend Labs (BLND) Surges 10.41% on Thursday Rebound Driven by Post-Insider Sale Volatility and Technical Bounces

Blend Labs (BLND) surged 10.41% on Thursday, marking its first two-day winning streak with a cumulative gain of 17.84%. The stock hit a peak of $4.2294, its highest since September 2025, driven by a 15.89% intraday rally. This rebound follows recent volatility tied to insider sales and technical indicators, with traders closely watching key resistance levels ahead.

Insider selling activity has been a focal point, as restricted stock lapses from 2024 enabled a series of transactions by Winnie Ling between July and September 2025. While these sales totaled 45,500 shares and raised liquidity concerns, filings emphasized no undisclosed material issues. Analysts suggest the activity reflects routine compensation management, though the volume has heightened investor scrutiny.

Technical indicators highlight mixed signals for the stock. The RSI reached 70.68, signaling overbought conditions, while the MACD crossed above the signal line, reinforcing short-term bullish momentum. Traders are monitoring a critical support threshold at $3.749 and a key resistance level at $4.2294. A breakdown below $3.749 could trigger a retest of lower support levels, according to market observers.

Options trading has intensified, with over 37,000 contracts exchanged recently, reflecting aggressive positioning. The $4 strike call option for February 2026 expiration saw 23,387 contracts traded, indicating high speculative interest. However, rapid time decay and gamma sensitivity underscore the risks of short-term strategies, particularly with implied volatility at 132.13%.

Despite a recent accolade as a gold winner in the ISG Women in Digital Awards, BLND’s stock fell 1.59% in after-hours trading, underscoring the dominance of liquidity and technical factors over reputational gains. Broader sector trends have had limited impact, as the stock’s movement remains driven by internal dynamics rather than external market shifts.