Elong Power Plummets 88.5%: What's Behind the Black Swan Move?

Summary
• Elong Power (ELPW) crashes to $0.3726, down 88.5% from $2.60
• Intraday range spans $0.2609 to $2.60, widest swing in 52W
• Turnover surges 589.8% to 41.1M shares, signaling extreme volatility

Elong Power’s catastrophic intraday collapse has sent shockwaves through the Renewable Energy sector. The stock’s freefall from $2.60 to $0.3726—a 88.5% drop—has created one of the most extreme single-day moves in 2025. With turnover exploding to 41.1M shares and the price near its 52-week low of $0.2609, traders are scrambling to decode the catalyst behind this black swan event.

Technical Meltdown Amid Sector Doldrums
The collapse of Elong Power appears rooted in a confluence of technical exhaustion and sector-wide headwinds. The stock’s Kline pattern signals a short-term bearish trend, while RSI at 35.2 indicates oversold conditions. Bollinger Bands show the price has collapsed to the lower band, with the 30-day moving average at $3.05 offering no support. Despite the Renewable Energy sector’s mixed performance—led by Nextera’s -0.1568% move—ELPW’s plunge is an outlier, suggesting algorithmic selling or margin calls triggered by its 11.17x dynamic P/E ratio. The absence of company-specific news points to broader market rotation away from speculative renewables plays.

Bearish Playbook: ETFs and Technical Triggers
• MACD: 0.347 (Signal: 0.444, Histogram: -0.098) – bearish crossover
• RSI: 35.2 (oversold)
• Bollinger Bands: Price at $0.3726 (Lower Band: $2.496)
• 30D MA: $3.05 (price below)

ELPW’s technicals scream short-term bearishness. The RSI at 35.2 suggests oversold conditions, but the 30D MA at $3.05 remains a critical resistance level. Traders should monitor the $0.2609 52W low as a potential floor. With no options liquidity and no leveraged ETFs provided, a cash-secured short position near $0.30 could capitalize on the breakdown. Aggressive traders might consider a 1:5 risk-reward short if the price tests $0.26, though the lack of options data limits structured strategies.

Backtest Elong Power Stock Performance
The backtest of ELPW's performance after an intraday plunge of -89% shows favorable results. The 3-Day win rate is 53.25%, the 10-Day win rate is 55.84%, and the 30-Day win rate is 61.04%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 74.34%, which occurred on day 58, suggesting that ELPW has the potential for significant recovery following a sharp decline.

Act Now: Ride the Bearish Wave or Wait for Rebound?
ELPW’s freefall has created a high-risk, high-reward scenario. While the 35.2 RSI suggests oversold conditions, the 30D MA at $3.05 and 52W low of $0.2609 are critical levels to watch. Nextera Energy (NEE)’s -0.1568% move highlights sector fragility. Investors should prioritize short-term bearish plays or wait for a rebound above $0.30 before considering longs. Watch for $0.2609 breakdown or a bounce above $0.30 to dictate next steps.