Sunrise New Energy Plummets 20.75%: What's Behind the Sudden Slide?

Summary
• Sunrise New Energy (EPOW) plunges 20.75% to $0.8875, hitting an intraday low of $0.8506
• Company reports $0.57M net profit in July-August 2025 and secures $0.59M government grant
• Technicals show short-term bullish trend but long-term bearish divergence

The stock’s sharp decline defies recent positive news, including a government grant and profitability turnaround. Traders are left scrambling to decipher whether this is a short-term correction or a deeper shift in market sentiment. With intraday volatility spanning $0.989 to $0.8506, the move underscores heightened uncertainty.

Profitability Hopes vs. Market Skepticism
Sunrise New Energy’s stock collapse follows a mixed bag of news. While the company announced a $0.57 million net profit in July-August 2025 and a $0.59 million government grant for graphite anode innovation, the market reacted with skepticism. The grant initially drove a 14.6% surge earlier this week, but profit-taking and short-term profit realization likely triggered today’s selloff. Additionally, the company’s shift to in-house graphitization, though cost-effective, may not be enough to convince investors of long-term sustainability. The recent 20,000-ton production line in Guizhou remains unproven, leaving room for doubt.

EV Sector Mixed as Sunrise New Energy Dives Amid Profitability Hopes
The Electrical Equipment & Parts sector shows mixed momentum, with Eaton (ETN) down 0.3%. While Sunrise’s peers like Elong Power (ELPW) and Ideal Power (IPWR) trade flat to up, EPOW’s 20.75% drop highlights divergent investor sentiment. The sector’s focus on cost optimization and capacity expansion aligns with Sunrise’s strategy, but its aggressive production plans and debt-heavy balance sheet (185.88% debt-to-equity) make it a riskier play compared to more stable names like GrafTech (EAF).

Technical Divergence and ETF Correlation Signal Caution
• 200-day average: $0.9157 (above current price)
• RSI: 72.28 (overbought territory)
• MACD: 0.0012 (bullish) vs. signal line -0.0135 (bearish)
• Bollinger Bands: Price at $0.8875, near lower band ($0.7421)
• Support/Resistance: 30D support at $0.8754–$0.8820

Technical indicators suggest a short-term rebound is possible, but long-term bearish divergence (price below 200-day MA) and overbought RSI signal caution. Key levels to watch: $0.875 (immediate support) and $0.9157 (200-day MA). The absence of options liquidity forces a focus on ETFs like XLB (Materials Select Sector SPDR) for sector exposure. Aggressive traders may short EPOW if it breaks below $0.875, but long-term investors should await confirmation of the 20,000-ton production line’s impact.

Backtest Sunrise New Energy Stock Performance
Key insight • EPOW has experienced 21 sessions since 2022 in which it fell 21 % + from the day’s high to the low. • The post-event drift is notably weak: the average cumulative return bottoms around –7 % on the 8-10-day horizon and stays below the benchmark until roughly day 14. Statistical significance (at the 5 % level) only appears on days 8-11, all negative. • By day 20 the average event return has recovered to roughly flat, and thereafter the edge dissipates – i.e. no persistent reversal. • Win-rate never exceeds 57 % on any day in the first month, confirming the episodic—but not structural—nature of the rebound. A short-term contrarian strategy (e.g. buying after the plunge and exiting within 1–2 weeks) would have faced a distinctly negative expectancy.You can review the full event-study chart set below.(If the interactive panel does not load automatically, please click the refresh icon on the right-hand side of the chat window.)

Act Fast: Key Levels and Sector Shifts Define EPOW’s Near-Term Fate
Sunrise New Energy’s 20.75% drop reflects a tug-of-war between short-term optimism and long-term skepticism. While the company’s profitability and grant news are positive, technical divergence and sector volatility suggest caution. Investors should monitor the $0.875 support level and the 200-day MA at $0.9157. If the sector leader Eaton (ETN) continues its 0.3% decline, EPOW’s downward momentum could accelerate. For now, a wait-and-watch approach is prudent, with a focus on production line progress and debt management. Watch for a breakdown below $0.875 or a rebound above $0.9157 to define next steps.