InflaRx Soars 10.26% on FDA's Regulatory Shift

InflaRx surged 10.26% in pre-market trading on August 29, 2025, marking a significant rise in its stock price.

The recent surge in InflaRx's stock price can be attributed to the FDA's consideration of noninvasive diagnostic measures for fatty liver disease. This regulatory shift has sparked optimism across the biotech sector, as it signals accelerated drug development timelines and reduced R&D costs. While InflaRx has no direct ties to liver disease, investors are extrapolating the positive regulatory changes to the broader biotech industry, driving up the stock price.

Despite the positive news, technical indicators suggest that the stock may be overbought, with the Relative Strength Index (RSI) hitting 79.7. This signals a potential pullback in the near future, as the stock price has surged significantly in a short period. However, the Moving Average Convergence Divergence (MACD) histogram shows bullish divergence, indicating short-term bullish momentum.

Investors should monitor the $1.25 level closely, as a break above this price could trigger a test of the $1.29 high, while a retest of the $0.985 low could reignite bearish sentiment. The 52-week high of $2.815 remains a distant target, but the 200-day moving average acts as a formidable resistance. With no options data available, leveraged ETFs are off the table, and traders should exercise caution when positioning for a breakout or a sharp correction.