Jiuzi Holdings Plunges 50% on Dual Capital-Raising Announcements: A Crypto Pivot or Liquidity Crisis?

Summary
• Jiuzi Holdings (JZXN) opens at $7.24, plummets to $2.50 intraday, closing at $2.6981
• Announces $1 billion crypto asset services pivot and $4 million equity raise at $2.50/share
• Turnover surges to 10.4 million shares, 20.8% of float
• RSI: 98.82 (overbought), MACD: 0.393 (bullish), 200-day MA: $1.95 (key support)

Jiuzi Holdings has experienced one of the most volatile intraday selloffs in recent memory, with its stock price collapsing 52% from a $7.24 open to a $2.50 low. The dramatic move follows dual announcements of a $1 billion private placement for crypto infrastructure and a discounted $4 million registered direct offering. With a 52-week high of $312.8 and a dynamic PE of -2.5, the stock's technicals and fundamentals now face critical junctures.

Dual Capital-Raising Announcements Trigger Investor Panic
The 52% intraday plunge is directly attributable to Jiuzi's simultaneous announcements: a massive $1 billion private placement for crypto custody infrastructure and a $4 million equity raise at $2.50/share—below its 52-week low of $2.5. While the $1 billion commitment signals institutional confidence in its crypto pivot, the $2.50/share offering triggered immediate skepticism. Investors interpreted the discounted price as a liquidity-driven move rather than a vote of confidence, exacerbating selling pressure. The CEO's emphasis on crypto infrastructure development failed to offset concerns about equity dilution and valuation disconnect.

Blockchain Sector Gains Momentum as DTCC Tokenizes US Markets
The broader blockchain sector is gaining traction, with the Depository Trust & Clearing Corporation (DTCC) receiving SEC approval to tokenize real-world assets. This regulatory green light aligns with Jiuzi's pivot into crypto asset services, though the company's stock performance diverges sharply from the sector's positive momentum. Sector leader Coinbase (COIN) is up 0.4163% intraday, reflecting mixed sentiment in tech-heavy markets. While Jiuzi's crypto push mirrors the sector's innovation trajectory, its discounted equity raise has isolated it from the broader industry's upward trajectory.

Navigating Jiuzi's Volatility: Technicals and Strategic Entry Points
• RSI: 98.82 (overbought, suggesting exhaustion)
• MACD: 0.393 (bullish), Signal Line: 0.038 (neutral), Histogram: 0.355 (divergence)
• Bollinger Bands: Upper: $2.89 (near current price), Middle: $0.46, Lower: -$1.97 (extreme bearish support)
• 200-Day MA: $1.95 (price at $2.75, above key support)

Jiuzi's technical profile reveals a sharp divergence between overbought RSI and collapsing price action, signaling potential exhaustion in the selloff. The 200-day moving average at $1.95 offers critical support; a break below this could trigger further panic. While the MACD remains bullish, the histogram's contraction suggests waning momentum. With no options chain data available, traders should focus on key levels: $2.5 (52-week low), $2.89 (Bollinger upper band), and $1.95 (200-day MA). Aggressive short-term traders may consider a bounce above $2.89 as a potential reversal signal, though liquidity risks remain high due to the 20.6% turnover rate.

Backtest Jiuzi Holdings Stock Performance
The backtest of JZXN's performance after a -50% intraday plunge from 2022 to now shows mixed results. The 3-day win rate is 46.93%, the 10-day win rate is 47.13%, and the 30-day win rate is 41.98%, indicating a higher probability of positive returns in the short term. However, the maximum return during the backtest period was only 5.03%, which suggests that while there is a chance of recovery, the potential for gains is limited.

Jiuzi at Crossroads: Crypto Bet or Liquidity Crisis?
Jiuzi Holdings' 52% intraday drop underscores the precarious balance between its ambitious crypto pivot and immediate liquidity needs. While the $1 billion private placement signals long-term strategic potential, the $4 million equity raise at a discounted price has eroded investor trust. Traders should monitor the $1.95 200-day support level and the $2.5 52-week low for directional clues. The sector's positive momentum, led by DTCC's tokenization move, offers a counterpoint to Jiuzi's struggles. For now, the stock remains a high-risk, high-reward proposition—watch for a breakdown below $1.95 or a rebound above $2.89 to define the next phase. Sector leader Coinbase (COIN) is up 0.4163% intraday, highlighting broader market caution but offering a benchmark for crypto sector sentiment.