SoFi Stock Rises 3.25% to $22.58 Amid Key Technical Support Test

SoFi Technologies (SOFI) exhibited a 3.25% gain in the latest session, closing at $22.58 amid heightened volatility. The following technical analysis synthesizes key indicators to assess the stock's trajectory, leveraging approximately one year of historical data.
Candlestick Theory
Recent candlestick patterns highlight critical price levels. The July 29 session printed a pronounced shooting star (high: $25.11, close: $22.40), signaling exhaustion after a 6.57% rally. This pattern established $25.11 as a near-term resistance. Subsequent rejection near this level triggered a pullback to $20.43 (July 30), validating $20.40–$20.50 as a strong support zone. The July 31 rebound formed a bullish engulfing candle, closing at $22.58 and reinforcing this support. Key resistance now converges near $23.80–$24.00, while sustained breaches above $25.11 remain pivotal for bullish continuation.
Moving Average Theory
The 50-day SMA ($19.80) and 100-day SMA ($17.20) uphold a bullish intermediate trend, with price consistently trading above both averages. The 200-day SMA ($14.10) anchors a positive long-term bias. Conclusively, the sequence (50-day > 100-day > 200-day) confirms a robust uptrend. However, the July 30 dip briefly pierced the 50-day SMA, highlighting its role as dynamic support. A sustained hold above this level is critical to avoid trend deterioration.
MACD & KDJ Indicators
The MACD (12/26/9) shows fading bullish momentum, with the histogram contracting after a bearish crossover on July 29. Simultaneously, the KDJ oscillator (14-period) signals potential reversal: K-line (58) and D-line (62) are retreating from overbought territory (>80 on July 29), while the J-line (50) flattens. This divergence implies waning upward impetus but stops short of a bearish trigger. MACD’s neutrality aligns with KDJ’s mid-range positioning, suggesting consolidation before the next directional move.
Bollinger Bands
Volatility expansion dominated July, with price testing the upper band ($24.80) on July 29. The subsequent contraction pushed price toward the 20-day SMA (mid-band at $22.00), coinciding with the July 31 close near $22.58. This equilibrium near the mid-band implies balanced momentum. A decisive close above $23.80 (upper band) or below $20.50 (lower band) is needed to signal breakout or breakdown conviction.
Volume-Price Relationship
Volume patterns validate key price moves. The July 29 rally to $25.11 occurred on the year’s highest volume (236M shares), confirming bullish euphoria. The subsequent 17% correction saw elevated volume (183M shares on July 30), indicating distribution. However, the July 31 rebound witnessed declining volume (119M), raising sustainability concerns. For bullish resumption, volume must expand on upward closes, particularly above $23.80.
Relative Strength Index (RSI)
The 14-day RSI (59) moderates from overbought territory (76 on July 29), aligning with the recent pullback. Current levels hover near neutral, reflecting balanced supply/demand. While RSI divergence preceded the July 30 sell-off (price highs not corroborated by RSI highs), no extreme readings (<30 or >70) currently suggest overextension. Probable consolidation may precede directional clarity.
Fibonacci Retracement
Applying Fibonacci to the swing low of $15.20 (June 20, 2025) and swing high of $25.11 (July 29, 2025), key retracements emerge: 23.6% ($22.77), 38.2% ($21.33), and 50% ($20.16). The July 30 low ($20.43) almost precisely tested the 50% retracement, where buyers intervened. Confluence with the $20.50 candlestick support reinforces this level’s significance. A sustained hold above the 23.6% level ($22.77) opens a path toward $25.11, while failure invites tests of $21.33–$20.16.
Confluence & Divergence Synthesis
Notable confluence includes the $20.40–$20.50 support (validated by candlestick theory, Fibonacci 50% level, and 50-day SMA). Bearishly, the MACD/KDJ loss of momentum, volume disagreement on rebounds, and RSI divergence during the July 29 peak signal caution. Probabilistically, the weight of support near $22.00 suggests range-bound trading ($20.50–$23.80) before a breakout attempt. Watch for volume expansion and MACD reversals to confirm directional bias.