Jiuzi Holdings (JZXN) Surges 32% on $1 Billion Crypto Pivot as Overbought RSI Signals Volatility

Summary
• Jiuzi Holdings (JZXN) rockets 32.16% intraday to $7.44, surging from $6.5 to $7.96
• Company expands private placement to $1 billion for crypto custody infrastructure
• RSI hits 98.82, signaling extreme overbought conditions
• Sector leader Coinbase (COIN) gains 2.5% amid crypto market optimism

Jiuzi Holdings (JZXN) is experiencing a historic intraday rally, driven by a strategic $1 billion crypto pivot and institutional investor backing. The stock’s 32% surge reflects a dramatic shift in market sentiment, though technical indicators suggest caution for short-term traders. With the company’s crypto ambitions now fully funded, the focus turns to execution risks and sector alignment.

Private Placement Expansion Ignites Institutional Confidence
Jiuzi Holdings’ 32% intraday surge stems from its announcement to expand a private placement from $12 million to $1 billion, an 80-fold increase, to fund its transition into crypto asset services. This move validates institutional confidence in the company’s pivot to secure custody infrastructure and storage solutions. The expanded financing, coupled with partnerships like SOLV Foundation and BitFi, positions Jiuzi to capitalize on the $100 billion+ crypto custody market. CEO Tao Li’s emphasis on strategic acquisitions and infrastructure development further fuels optimism, though the stock’s 93% annual decline and -6.91 P/E ratio highlight underlying risks.

Blockchain Sector Rally Gains Momentum as COIN Leads
The blockchain sector is showing renewed strength, with Coinbase Global (COIN) rising 2.5% in intraday trading. Jiuzi’s 32% jump outpaces sector peers, reflecting its aggressive capital raise and crypto focus. While COIN’s modest gain indicates broader market caution, Jiuzi’s move underscores a shift toward custody and institutional infrastructure—a niche with growing demand as Bitcoin ETFs and staking products proliferate. The sector’s mixed performance highlights divergent strategies between exchange operators and infrastructure builders.

Navigating Overbought RSI and Volatility with ETFs
• MACD: 0.393 (bullish divergence), Signal Line: 0.038, Histogram: 0.355 (momentum intact)
• RSI: 98.82 (extreme overbought, potential reversal)
• Bollinger Bands: Upper $2.89 (far above current price), Middle $0.46 (irrelevant), Lower -$1.97 (irrelevant)
• 200D MA: $1.95 (far below current price, long-term bullish)

Jiuzi’s technicals paint a volatile picture: a short-term bullish trend clashes with a long-term ranging pattern. The RSI at 98.82 suggests an imminent pullback, while the MACD’s positive divergence hints at sustained momentum. Traders should focus on key levels: the 52-week high of $312.8 (unlikely) and the 200D MA at $1.95 as a critical support. Given the lack of options liquidity and ETF data, a cautious approach is warranted. Aggressive bulls might consider a tight stop-loss above $6.5 (intraday low) to capture a potential bounce, while bears should watch for a breakdown below $7.24 (today’s open).

Backtest Jiuzi Holdings Stock Performance
The backtest of JZXN's performance after a 32% intraday surge from 2022 to now shows mixed results. While the stock experienced a maximum return of 0.51% on the day following the surge, the overall short-term and medium-term win rates are below average. The 3-day win rate is 49.07%, the 10-day win rate is 45.14%, and the 30-day win rate is 35.42%. This indicates that the stock tended to experience declines in the aftermath of the intraday surge, with the maximum return day being 1 day after the surge, suggesting that the positive momentum did not persist over longer time frames.

Bullish Catalysts vs. Overbought Warnings: What to Watch Now
Jiuzi’s 32% surge is a high-risk, high-reward trade. While the $1 billion capital raise validates its crypto pivot, the stock’s extreme overbought RSI and -6.91 P/E ratio signal caution. Short-term traders should monitor the 200D MA at $1.95 and the 52-week high of $312.8 as pivotal levels. The sector leader, Coinbase (COIN), gaining 2.5% offers a barometer for broader crypto sentiment. Action: Watch for a breakdown below $7.24 or a reversal above $7.96 (intraday high) to confirm direction.