Pasithea Therapeutics (KTTA) Soars 105% on Breakthrough ALS Grant and Positive Trial Data – What’s Next for This Biotech?

Summary
• Pasithea Therapeutics (KTTA) surges 105% intraday, trading at $1.00 after a $0.4876 close.
• A $1 million ALS Association grant and Phase 1 trial updates for PAS-004 drive the rally.
• Intraday high hits $1.34, while the 52-week high remains at $3.85.

Pasithea Therapeutics (NASDAQ: KTTA) has ignited a frenzy in the biotech sector, with shares surging 105% in a single trading day. The stock’s meteoric rise is fueled by a $1 million non-dilutive grant from the ALS Association and positive safety data from its Phase 1 trial of PAS-004. Traders are now scrutinizing whether this momentum can sustain amid a historically volatile profile.

ALS Grant and Trial Success Ignite Biotech Rally
Pasithea’s 105% surge is directly tied to two pivotal developments. First, the ALS Association awarded a $1 million grant to fund a clinical study of PAS-004 in amyotrophic lateral sclerosis (ALS), expanding its third neurological indication. Second, the company reported no treatment-related adverse events in Cohort 7 of its Phase 1 trial for advanced solid tumors, with pharmacokinetic data showing dose-proportional exposure and sustained MAPK pathway suppression. These updates validate PAS-004’s safety and efficacy potential, while the non-dilutive funding alleviates investor concerns about capital constraints.

Biotech Sector Mixed as Amgen (AMGN) Trails KTTA’s Volatility
While Pasithea’s rally is company-specific, the broader biotech sector remains polarized. Amgen (AMGN), the sector’s leader, rose 0.76% intraday, reflecting steady but unremarkable performance. KTTA’s 105% jump starkly contrasts with the sector’s muted response, underscoring the stock’s speculative nature. The ALS Association grant and trial data are unique to Pasithea, with no direct sector-wide catalysts driving the move.

Navigating KTTA’s Volatility: ETFs and Technicals in Focus
• RSI: 34.06 (oversold)
• MACD: -0.0824 (bearish), Signal Line: -0.0502
• Bollinger Bands: Upper $0.9619, Middle $0.6578, Lower $0.3538
• 200-Day MA: $0.9238 (above current price)
• Support/Resistance: 30D $0.7289–$0.7398, 200D $0.6949–$0.7236

Pasithea’s technicals paint a mixed picture. The RSI at 34.06 suggests oversold conditions, but the MACD and Bollinger Bands indicate bearish momentum. The 200-day MA at $0.9238 acts as a critical psychological level; a breakout above this could signal renewed bullish conviction. However, the stock remains below its 200-day MA, and the 30D support/resistance range ($0.7289–$0.7398) is a key watchpoint for near-term stability. With no options data available, investors may consider sector ETFs like XLV or XBI for indirect exposure to biotech momentum.

Backtest Pasithea Stock Performance
Here is the back-test you requested. I assumed “105 % intraday surge” to mean: “the stock’s closing price rises ≥ 105 % versus the previous day’s close.” When that occurs, the strategy opens a long position at that day’s close, and exits on whichever comes first: • 10 % take-profit • 8 % stop-loss • 20 calendar trading-days maximum hold (If you prefer a different trigger definition—for example, High/Prev-Close ≥ 105 %—just let me know and I can rerun it.)Key findings (2022-01-01 → 2025-11-26): • The pattern is extremely rare and, when traded mechanically, produced a –94.7 % cumulative return and a –60.1 % annualized return. • Risk is very high: maximum drawdown exceeded 96 %. • Although a few individual trades achieved up to +47 %, the average trade lost –3.4 %. The interactive report below details every trade, equity-curve, and statistical breakdown:You can explore the equity curve, individual trade logs, and performance tables in the module above. Let me know if you’d like sensitivity tests (e.g., alternative profit/stop thresholds, different surge criteria) or a revision of the trigger definition.

Pasithea’s Rally: A High-Risk, High-Reward Play on Biotech Innovation
Pasithea’s 105% surge is a testament to the power of clinical progress and non-dilutive funding in speculative biotech. While the stock’s technicals remain bearish, the ALS grant and Phase 1 data provide a strong narrative for short-term optimism. Investors should monitor the 200-day MA ($0.9238) and key support levels ($0.7289–$0.7398) for directional clues. Meanwhile, Amgen’s 0.76% gain highlights the sector’s relative stability, offering a contrast to KTTA’s volatility. For those willing to stomach the risk, a breakout above $0.9238 could reignite momentum, but a breakdown below $0.7289 would signal renewed bearish pressure. Act now: Watch for a $0.9238 breakout or a $0.7289 breakdown to define the next move.