Pasithea Therapeutics (KTTA) Surges 41.5% on ALS Grant and Trial Momentum – What’s Next for This Biotech?

Summary
• Pasithea Therapeutics (KTTA) rockets 41.5% intraday to $1.50, surging from $1.34 to $2.06
• $1 million ALS Association grant fuels optimism for PAS-004’s first ALS trial
• Positive Phase 1 trial data in solid tumors and neurofibromatosis Type 1 (NF1) drives momentum

Today’s explosive move in Pasithea Therapeutics marks one of the most dramatic intraday rallies in biotech this year. The stock’s 41.5% surge, fueled by a $1 million ALS grant and robust clinical data, has positioned it as a focal point for investors seeking high-conviction biotech plays. With a dynamic 52-week range of $0.28 to $3.85 and a current price near its 200-day average, the stock’s volatility and technical setup demand closer scrutiny.

ALS Grant and Positive Trial Data Ignite Biotech Rally
Pasithea’s 41.5% intraday surge was catalyzed by a trifecta of catalysts: a $1 million ALS Association grant for PAS-004’s first ALS trial, positive Phase 1 safety data in solid tumors (Cohort 7), and a new equity offering. The ALS grant, part of the Hoffman ALS Clinical Trial Award, funds a study evaluating PAS-004’s efficacy in amyotrophic lateral sclerosis (ALS), expanding its pipeline into a third neurological indication. Concurrently, the Phase 1 trial in advanced solid tumors reported zero dose-limiting toxicities in Cohort 7, with pharmacokinetic (PK) and pharmacodynamic (PD) data supporting continuous MAPK pathway suppression—a critical mechanism for chronic disease management. These updates, combined with a $15M equity raise, have reinvigorated investor sentiment around Pasithea’s early-stage pipeline.

Technical Setup and ETF Implications for High-Volatility Biotech Play
• 200-day average: 0.922 (below current price)
• RSI: 62.64 (neutral, not overbought)
• MACD: -0.0356 (bullish crossover potential)
• Bollinger Bands: Upper (1.027), Middle (0.6747), Lower (0.3219) (price near upper band)

KTTA’s technical profile suggests a short-term bullish breakout, with the 200-day average acting as a critical support level. The RSI at 62.64 indicates moderate momentum without overbought conditions, while the MACD histogram’s positive divergence hints at potential continuation. Bollinger Bands show the stock trading near the upper boundary, amplifying the case for a continuation of the rally. However, the absence of leveraged ETFs and limited options liquidity means traders must rely on core technical levels. Key resistance lies at the 52-week high of $3.85, while a breakdown below $1.06 (previous close) could trigger a retest of the $0.6747 mid-Bollinger level. Given the lack of options data, a core strategy would involve scaling into long positions on a pullback to $1.20–$1.30, with a stop-loss below $1.06.

Backtest Pasithea Stock Performance
The event-study backtest is complete. Key findings:• Only 3 instances of ≥ 42 % intraday surges occurred for KTTA between 2022-01-01 and 2025-11-28. • In the 30 trading-day window after those spikes, KTTA’s average cumulative return was –33.7 %, and performance was statistically worse than a buy-and-hold benchmark for most of the window. • One day after the surge, the median return was –8.4 %; losses deepened over the month, with no meaningful recovery. • Win-rates were low (≤ 33 %), highlighting poor follow-through after extreme upside gaps.Parameter notes (auto-selected) 1. Analysis window: ±30 trading days around each event, the platform’s default for single-stock event studies. 2. Price series: adjusted daily close. 3. Event definition: daily_pct_change ≥ 42 %. 4. Backtest period: 2022-01-01 to 2025-11-28 (entire data history available). You can review full interactive charts, cumulative return curves, and day-by-day statistics in the module below.Feel free to explore the interactive dashboard, and let me know if you’d like to adjust parameters (e.g., different return windows, additional filters, or risk-control overlays).

Pasithea’s Biotech Breakthrough: A High-Volatility Play on ALS and Cancer Pipeline
Pasithea’s 41.5% rally is a testament to the power of clinical milestones and non-dilutive funding in biotech. While the stock’s technicals suggest a continuation of the bullish trend, investors must remain cautious of its high volatility and lack of liquidity. The ALS trial expansion and Phase 1 tumor data provide a strong narrative, but regulatory risks and cash-burn dynamics remain critical. With Amgen (AMGN) down 0.59% as a sector leader, biotech’s broader momentum appears mixed. For now, key levels to watch are $1.50 (current price), $1.06 (previous close), and $0.6747 (Bollinger midline). Aggressive bulls may consider a long bias on a retest of $1.20, while conservative traders should await a clearer breakout above $2.06.