EDHL Surges After Reverse Split Announcement

Everbright Digital (Nasdaq: EDHL) stock news Everbright Digital (EDHL) surged more than 22.7% in post-market trading after the company announced a 1-for-16 reverse stock split. The move, effective February 9, 2026, aims to raise the company’s share price to meet Nasdaq’s minimum pricing requirements. The announcement acted as a direct catalyst, triggering a sharp response from the market. EDHL is a micro-cap stock, and such structural moves can significantly impact its price behavior. The stock closed at $0.171 earlier in the day and has since jumped to $0.2099 in the after-hours session.

EDHL has been a volatile stock for some time, especially in the context of its recent price action. Over the past 60 days, it traded as high as $1.13 and as low as $0.15. Today’s jump is the stock’s largest move in a while, and it’s happening amid a broader bullish trend in U.S. equity futures. The S&P 500 and Nasdaq 100 futures are both up more than 1.8%, while the Dow is up nearly 2.5%. This suggests the broader market environment is supportive, but EDHL’s move is driven more directly by its own fundamental event.

Why is EDHL stock dropping today? Despite the recent surge, EDHL has faced significant challenges over the past year. The stock has trended lower overall, with the 20-day and 50-day moving averages currently at $0.24 and $0.47, respectively. The RSI is at 32.85, which points to a bearish bias. EDHL’s recent price action is also notable for its volatility. The stock has been trading near its lower range for both the 20-day and 60-day lookback periods, which indicates a continuation of a downtrend pattern.

The volume pattern today also provides some insights. EDHL’s relative volume is at 1.14 times its 20-day average, and the amount traded today is above average. While this isn’t an extremely high level of participation, it does suggest that more investors are paying attention to the stock, especially after the reverse split announcement. The stock’s ATR (Average True Range) is at $0.038, which is relatively high for a stock in this price range. That means the stock is prone to quick swings near key levels.

What to watch next for EDHL stock The stock is currently in a range-bound continuation of a downtrend, and its nearest key levels are $0.17 (support) and $0.24 (resistance). If EDHL manages to break above $0.24 with strong volume, it could signal a short-term reversal in sentiment. However, if it falls below $0.17, that would confirm a deeper pullback and raise concerns about the stock’s ability to sustain momentum. The 50-day moving average at $0.47 remains a distant target, and hitting that level in the near term would require a much stronger and sustained move.

Looking ahead, EDHL traders should keep an eye on both volume and price action. A strong follow-through in the next one to two sessions could validate the recent upmove as a genuine structural shift. Conversely, a rapid retest of the $0.17 level with no follow-through could signal a failed breakout or a continuation of the bearish trend. The stock’s performance over the next few days will be critical in determining whether this is a short-term pop or the start of a longer-term turnaround.