SoFi Technologies Shares Drop 7.86% on Death Cross Bearish Patterns and Oversold RSI Signal Extended Downtrend

SoFi Technologies (SOFI) fell 7.86% in the most recent session, reflecting heightened bearish momentum. This sharp decline aligns with a broader downtrend, as evidenced by multiple technical indicators. Candlestick Theory reveals key support levels around $26.03–$26.18 and resistance near $27.28–$27.46. A potential bearish engulfing pattern or dark cloud cover is forming, with the price testing the lower end of a contracting consolidation range. If the $26.03 level breaks, a target of $25.79 may follow, with further downside risk if volume remains elevated.
Moving Average Theory confirms the bearish bias: the 50-day MA (around $27.00) is below the 200-day MA (~$27.50), forming a "death cross" that signals a weakening trend. The 100-day MA (~$27.20) adds resistance, and the price’s position below all three averages reinforces the downtrend. A cross below the 200-day MA could accelerate selling pressure.
MACD and KDJ Indicators show overbought conditions resolving into oversold territory. The MACD line has crossed below the signal line, confirming bearish momentum, while the KDJ stochastic oscillator (K at ~20, D at ~25) suggests exhaustion in the short term. However, a bearish divergence in KDJ—where the price makes lower lows but the oscillator does not—may hint at a potential rebound, though this is less probable without a clear volume uptick.

Bollinger Bands indicate low volatility, with the price near the lower band. This "band contraction" often precedes a breakout or breakdown. A break below the lower band could trigger a test of $25.79, while a rebound might target the mid-band (~$26.50), though this would require a shift in momentum.
Volume-Price Relationship supports the bearish narrative: the 7.86% drop occurred on elevated volume (~120M shares), validating the move’s strength. However, declining volume in subsequent sessions could signal waning bearish conviction, potentially leading to a consolidation phase.
Relative Strength Index (RSI) at ~28 confirms oversold conditions, but caution is warranted, as SOFI has remained in oversold territory during its recent downtrend. A reversal above 30 would require a sustained rally, which is unlikely without a confluence of bullish signals.
Fibonacci Retracement levels drawn from a key high (~$31.98) to a low (~$23.52) show critical support at 61.8% (~$26.20) and 78.6% (~$25.40). The current price near $26.98 suggests a potential pullback toward these levels, with the 61.8% retracement acting as a near-term pivot.
Confluence points emerge at $26.03–$26.18, where Fibonacci support, Bollinger Bands, and candlestick patterns align. A break below this level could trigger a cascade of stop-loss orders and further downside. Divergences between KDJ and price action suggest caution, as the oscillator’s failure to confirm lower lows may delay a meaningful rebound.

In summary, SOFI’s technical profile is bearish, with multiple indicators converging on a continuation of the downtrend. Key support at $26.03 and resistance at $27.28 define the immediate battleground. While oversold conditions and Fibonacci levels offer potential entry points for contrarian traders, the broader trend—supported by moving averages, MACD, and volume—suggests further declines are probable unless a sustained rally above $27.46 materializes.