Eldon EDLN Plunges 49.76% Amid Short-Squeeze Fears and Regulatory Speculation

Shares of Eledon plunged 49.7561% in pre-market trading on November 10, 2025, marking one of the steepest declines in its history amid unconfirmed speculation about operational challenges and regulatory scrutiny. The sharp drop triggered widespread sell-offs across short-term positions, with analysts noting the absence of immediate catalysts such as earnings reports or major corporate announcements.

While no official statements were released, market participants pointed to elevated short-interest levels and technical breakdowns below critical support thresholds as potential drivers. The move also coincided with broader sector rotations, though Eledon’s severity of decline outpaced peers, suggesting position-specific pressures. Traders emphasized the need for caution ahead of any post-earnings catalysts or regulatory updates, which could either stabilize or exacerbate volatility.

Technical indicators highlight a potential continuation pattern, with the 200-day moving average now acting as a key resistance level. However, overextended short-term momentum metrics suggest a risk of countertrend bounces in the near term. Investors are advised to monitor volume dynamics and order flow for signs of institutional involvement or liquidity crunches.

The backtest strategy focuses on mean-reversion principles, targeting entry points within 15% of the pre-market low. A trailing stop-loss at 5% below the 52-week high aims to balance risk while capturing potential rebounds. Position sizing is adjusted dynamically based on volatility readings, with a maximum exposure cap of 2% of portfolio equity.