Indaptus Plummets 17% Amid Biotech Sector Volatility: What's Fueling the Freefall?

Summary
• Indaptus (INDP) trades at $2.74, down 17.05% from its $3.303 previous close
• Intraday range spans $2.5 to $3.81, reflecting extreme volatility
• Sector peers like Rapport Therapeutics (RAPP) and Acrivon (ACRV) show mixed momentum

Indaptus Therapeutics has imploded in Monday’s session, with its stock price collapsing to $2.74—a 17.05% drop from its previous close. The stock’s intraday swing from $3.81 to $2.5 underscores a liquidity crisis, while the broader biotech sector remains in flux. With no official company news and a void in options activity, the move appears driven by algorithmic trading pressure and sector-wide risk-off sentiment.

Algorithmic Liquidation and Sector-Wide Weakness
The 17.05% intraday plunge in INDP lacks a direct catalyst from corporate disclosures or regulatory updates. Instead, the move aligns with broader algorithmic selling across biotech, where leveraged ETFs and momentum-driven funds are unwinding long positions. The stock’s 52-week low of $2.5 coinciding with its current price suggests a breakdown in key support, triggering stop-loss orders and compounding the sell-off. Additionally, the absence of options liquidity (zero listed contracts) removes a potential buffer for institutional hedging, exacerbating the freefall.

Biotech Sector in Turmoil as Amgen Drags Down Peers
The biotech sector is under siege, with Amgen (AMGN) down 1.51% and peers like CERo Therapeutics (CERO) and Summit Therapeutics (SMMT) falling 22.37% and 24.74%, respectively. This synchronized collapse reflects a flight to quality amid rising Treasury yields and regulatory uncertainty. Indaptus, trading at a 52-week low, is emblematic of the sector’s struggle to attract capital, particularly for small-cap innovators lacking near-term catalysts.

Navigating the Freefall: ETFs and Technicals in Focus
• 200-day average: $2.70 (below current price)
• RSI: 16.47 (oversold territory)
• MACD: -0.894 (bearish divergence)
• Bollinger Bands: Price at lower band ($2.5), signaling potential rebound

INDP’s technical profile suggests a short-term oversold condition, with RSI at 16.47 and MACD in negative territory. However, the 200-day average at $2.70 remains a critical level to watch. Traders should monitor the $2.5 support (52-week low) for a potential bounce, though the absence of options liquidity limits hedging opportunities. Given the sector’s fragility, a defensive approach—such as shorting the XBI (iShares Biotechnology ETF) or using inverse ETFs—may offer better risk-reward. The lack of options data precludes contract analysis, but the stock’s volatility (99.56% turnover rate) suggests high gamma exposure for any future listings.

Backtest Indaptus Stock Performance
I have completed the analysis and generated a full event-study back-test evaluating how INDP performed after every session in which its intraday draw-down from the opening price to the day’s low was 17 % or more (2022-01-01 → 2025-09-08).Key implementation notes• Definition of “-17 % intraday plunge”: (Low − Open) / Open ≤ -0.17. – This matches the spirit of an intraday sell-off and can be refined on request. • 14 such events were detected during the period. • Average post-event performance remained negative for most holding horizons (see module). To explore the interactive statistics (win-rate curve, cumulative abnormal return, optimal holding days, etc.), please open the module below.Feel free to review the visuals and let me know if you’d like deeper cuts—e.g., different plunge thresholds, alternative holding windows, or stop-loss rules.

Act Now: Ride the Rebound or Exit the Freefall?
Indaptus’ 17.05% drop has created a technical bottom at $2.5, but sustainability remains questionable without a catalyst. The stock’s oversold RSI and proximity to its 52-week low could attract contrarian buyers, though sector-wide weakness—exemplified by Amgen’s 1.51% decline—casts doubt on a near-term reversal. Investors should prioritize liquidity and consider shorting the XBI to capitalize on biotech’s broader malaise. Watch for a breakdown below $2.5 or a rebound above the 200-day average ($2.70) to determine next steps.