SOS Plunges 25.5% on Share Consolidation Shockwave: A Bear Market Catalyst Unfolds

Summary
• SOS Limited’s stock nosedives 23.3% intraday, hitting a 52-week low of $1.23.
• Company announces termination of its deposit agreement and a 150-for-1 share consolidation, effective September 8.
• Technical indicators signal extreme bearish momentum, with RSI at 10 and MACD in negative territory.

The blockchain sector faces a seismic shift as SOS Limited’s dramatic share restructuring triggers a freefall in its stock price. With the stock trading at $1.25—down from $1.63 at open—the market reacts to a complex corporate action that could redefine the company’s capital structure and investor dynamics.

Share Consolidation and Deposit Agreement Termination Spark Panic
SOS Limited’s announcement to terminate its deposit agreement and execute a 150-for-1 share consolidation has sent shockwaves through the market. The move, approved by shareholders on August 11, will automatically convert American Depositary Shares (ADSs) into Class A ordinary shares at a 1:1 ratio, effective September 8. This structural overhaul, combined with the company’s ongoing losses and volatile cash flows, has triggered a liquidity crisis. Investors are fleeing as the restructured capital framework introduces uncertainty about trading mechanics and valuation clarity, compounding existing operational challenges.

Short-Side Precision: ETFs and Technicals in a Bearish Abyss
• RSI: 10.0 (extreme oversold)
• MACD: -0.932 (bearish divergence), Signal Line: -1.054
• Bollinger Bands: Price at $1.25, near lower band ($1.319), indicating exhaustion
• 200-Day MA: $5.69 (far above current price)

The technical landscape for SOS is dire. With RSI at a historic low and MACD signaling deep bearish momentum, the stock is entrenched in a multi-year downtrend. Short-term traders should target key support levels at $1.23 (52-week low) and $1.15 (psychological round number). The absence of options liquidity forces a focus on cash-secured shorting or ETFs, though no leveraged ETFs are available for SOS. Given the structural headwinds, a bearish bias is warranted until the stock retests $1.63 (previous close) with conviction.

Backtest SOS Stock Performance
The back-test is complete and the results have been organised into an interactive report. Please review the module below for the full performance statistics and the precise conditions used in the test.Key notes:1. Data period 2015-01-01 – 2025-08-29 (defaulted to ensure a long history).2. Event definition Close-to-close drop ≥ 25 % (used as a practical proxy for an intraday -25 % plunge due to data-granularity limits).3. Holding rule Positions were automatically closed after exactly 5 trading days.4. Risk controls None beyond the fixed holding period (no stop-loss/take-profit specified).Feel free to explore the module for detailed performance metrics or let me know if you’d like to adjust any parameters (e.g., different holding period, stop-loss, or a stricter intraday definition).

Act Now: SOS’s Structural Overhaul Signals a New Bear Market Phase
SOS’s share consolidation and deposit agreement termination mark a pivotal moment for the stock, with technical indicators confirming a breakdown in buyer sentiment. The blockchain sector, led by Microsoft (-0.16% as a relative leader), faces broader scrutiny as investors reassess risk. Immediate action is required: short-term traders should prioritize tight stop-loss orders below $1.23, while long-term investors may await catalysts post-September 8. With SOS trading at a fraction of its 52-week high ($15.51), the path forward hinges on liquidity stability and regulatory clarity. Watch for Microsoft’s performance to gauge sector resilience.