Erayak Power Plunges 94.77% Intraday—What’s Fueling This Historic Collapse?

Summary
• RAYA implodes 94.77% to $0.15, erasing 92% of its 52-week high of $3.35
• Intraday range of $1.72 to $0.15 highlights extreme volatility
• Turnover surges 191.74% to 59.41M shares, signaling massive liquidity shift

Erayak Power (RAYA) has become the epicenter of a historic intraday collapse, plummeting from $1.65 at open to $0.15 near the session low—a 94.77% drop. This unprecedented move has wiped out 92% of its 52-week high, with turnover exploding to 59.41M shares. While the Electric Utilities sector remains stable, RAYA’s meltdown underscores a liquidity crisis unrelated to broader market trends.

Liquidity Vacuum Triggers Black Hole Move
RAYA’s catastrophic 94.77% decline stems from a liquidity vacuum exacerbated by the stock’s widening bid-ask spread and a 191.74% turnover rate. This ‘black hole’ scenario—where sellers dominate without buyers—follows a 46.41% monthly gain, suggesting profit-taking turned into a death spiral as buyers vanished. The current price of $0.173 sits 22.7% above the 52-week low of $0.1437, indicating a potential floor near $0.15. With no buyers stepping in, the stock’s technicals now point to further downside to test the 52-week low.

Electric Utilities Sector Stable as RAYA Diverges
While the Electric Utilities sector remains stable—led by NextEra Energy (NEE) with a 0.958% intraday gain—RAYA’s liquidity crisis is an isolated event. NEE’s resilience highlights the sector’s fundamental strength, contrasting sharply with RAYA’s technical breakdown. Investors should treat RAYA’s collapse as a liquidity-driven anomaly rather than a sector-wide trend.

Bearish Technical Divergence and Short-Term Positioning
• 200-day average: 1.437 (well below current price)
• RSI: 28.08 (oversold divergence)
• MACD: 0.0603 (bearish) vs. 0.2083 signal line
• Bollinger Bands: 3.698 (upper) to 1.104 (lower), current price 0.173 near lower band

RAYA’s technicals reveal a bearish divergence: RSI at 28.08 (oversold) while price continues to fall. The 200-day MA at 1.437 suggests further downside to test the 52-week low of $0.1437. With no options chain data available, short-term bearish positioning would require a stop below the $0.1437 intraday low. The $0.173 level now acts as a critical pivot point—a break below $0.1437 would validate a 19.4% drop to the 52-week low. Given the liquidity vacuum, aggressive short sellers may consider entering at $0.1437 with a tight stop at $0.173 to capture the impending breakdown.

Backtest Erayak Power Stock Performance
The backtest of RAYA's performance after an intraday surge of 8% shows favorable results. The 3-Day win rate is 51.94%, the 10-Day win rate is 52.65%, and the 30-Day win rate is 61.13%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest period was 20.61%, which occurred on day 59, suggesting that RAYA can capitalize on intraday volatility effectively.

Critical Floor at $0.1437: Immediate Action Required
RAYA’s 94.77% collapse demands urgent position management as the stock approaches its 52-week low. With technicals pointing to a potential breakdown below $0.1437, investors should consider tightening stops or initiating short positions against the $0.1437 support level. While sector leader NextEra Energy (NEE) gains 0.958%, RAYA’s liquidity crisis remains isolated. Immediate focus should be on the $0.1437 level—a break below would confirm a bearish reversal with $0.1437 as the next target. Watch for the $0.1437 breakdown or regulatory reaction.