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SOS Stock Approaches Key $1 Level Despite Broader Crypto Drop


Today was another interesting day for the crypto mining company S.O.S. (NYSE:S.O.S.). The price action of SOS stock actually took shares near $1 in afternoon trading, hitting an intraday high above 97 cents. Although SOS gave up some of those gains, this stock is still more than 15% higher than yesterday.

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We covered this rally in SOS stocks earlier this week as stocks really started to take off on Wednesday. Indeed, at present, investors seem eager to find unique opportunities in the market. SOS is a company that has been fitting this profile for some time.

Indeed, SOS is a crypto-related company engaged in mining, blockchain-based insurance, and security management. As cryptocurrency prices have fluctuated, so have SOS stocks. SOS also remains one of the best-selling companies on Wall Street. With this in mind, retail investors have been very attentive.

There is also another factor that has investors’ interest right now…

The $1 level is not just a psychological threshold

For many investors, psychological thresholds, or what technical traders call resistance levels, can be important. For SOS, the $1 level is even more so.

Indeed, at less than $1 per share, SOS is in non-compliance with the New York Stock Exchange. The company recently received a non-compliance letter from the NYSE last week to this effect.

Such a letter can be expected. Stocks must maintain a certain price level to promote liquidity and security for investors. Thus, the battle between bulls and bears on the SOS stock seems to be intensifying. Why? A reverse stock split or other negative action could benefit short sellers. The bulls seem to be holding their ground well, looking to force pressure.

It remains to be seen if SOS stock continues to rise significantly above $1 per share. However, this battleground stock is one that many investors will want to put on their watch list right now.

As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

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