EDHL Jumps 22.7% on Reverse Split — But Support at 0.17 Tests Survival

Everbright Digital (Nasdaq: EDHL) stock news is making waves as the micro-cap stock surged 22.7% in post-market trading on February 6, 2026. The move came after the company announced a 1-for-16 reverse stock split to meet Nasdaq’s minimum price requirements. While the regulatory catalyst is clear, the broader implications for the stock and market structure are more nuanced. Let’s break down the key factors at play.

Why is EDHL stock dropping today?

Short answer: It’s not dropping — it jumped 22.7% post-market due to the reverse split.

The reverse split, while a regulatory necessity, signals a structural shift in the stock’s liquidity profile. For micro-cap names, such moves are often a double-edged sword. On one hand, they help avoid delisting by bringing the stock above the $1 minimum. On the other, they dilute share counts and can create volatility as the market recalibrates to the new pricing structure.

That said, EDHL’s 22.7% move is not just a one-off. The stock has been in a steep bearish trend for months, with its 20-day and 50-day moving averages at 0.24 and 0.47, respectively. The recent rally, while significant, still leaves the stock well below its 60-day high of $1.13 and its 20-day high of $0.51. The question now is whether this is a reentry into a downtrend or the start of a short-term bounce.

What technical levels matter for EDHL stock?

Everbright Digital (Nasdaq: EDHL) stock news is now being analyzed through a technical lens, and key levels are coming into focus. Currently, the stock is sitting at 0.20 per share, with the nearest support at 0.17 and the nearest resistance at 0.24.

Put differently, the 0.17 level is a critical support. If the stock closes below that, it would validate a deeper correction or even a reversal of the recent rebound. On the flip side, a clean break above 0.24 — the 20-day MA — could signal a more bullish shift, though the broader downtrend remains intact.

In practice, this creates a tight trading range between 0.17 and 0.24. Given the stock’s high volatility and low liquidity (especially in after-hours), traders should monitor volume patterns. Strong volume on a breakout to either side would add credibility. Weak or shrinking volume could point to a failed attempt or a market that’s still undecided.

EDHL support and resistance levels are therefore critical for gauging the stock’s near-term direction. A strong break above 0.24 would be a positive sign, but the 0.47 level — the 50-day MA — remains a long-term hurdle.

What to watch in the coming days?

The immediate focus is on whether the 0.17 support holds. If it does, the stock may consolidate between 0.17 and 0.24. If it breaks, watch for a drop to the next support level, likely 0.15 — the 60-day low.

By contrast, a break above 0.24 and a follow-through in volume could extend the bounce toward 0.26 (0.20 + 1.5x ATR) or even 0.29 — a 15% gain from current levels. Either way, the stock is unlikely to sustain a move back to its mid-2025 highs without stronger fundamentals or news.

At the end of the day, the reverse split is a procedural move, not a fundamental one. The market will be watching for follow-through — whether through positive earnings news, regulatory approval, or renewed buying interest — to determine if this is a bottoming process or just a temporary rebound.

Still, for now, the key technicals and volume patterns are the best guide. And for a micro-cap stock like EDHL, even small moves can carry big implications.