Summary
• Elong Power Holding Limited’s shares fell 17.6% to $0.1466 in pre-market trading following a reverse stock split announcement.
• The 16-for-1 reverse stock split, approved by shareholders, aims to improve market appeal but raised investor concerns.
• The stock has underperformed significantly, down 87.9% from its 200-day moving average, with low trading engagement indicated by recent volume metrics.
Elong Power Holding Limited (ELPW) is experiencing significant pressure as shares trade down to $0.1466 in pre-market, reflecting a 17.6% decline from the last close of $0.1780. This downward movement comes in light of the recent announcement regarding a reverse stock split, which has increased investor caution.
Reverse Stock Split Details Spark Unease
In an announcement released earlier today, Elong Power revealed that it will be executing a reverse stock split of its ordinary shares at a ratio of 16-for-1. This decision was approved by shareholders during a special meeting on November 24, 2025. While the company aims to enhance its stock’s market appeal and compliance, such corporate actions often induce uncertainty among investors, contributing to the current sell-off.
Despite the management’s intentions, the announcement has resulted in immediate negative sentiment, illustrated by the sharp pre-market decline. The reverse split can sometimes lead to confusion or concern about the company’s underlying financial health.
Market Performance Overview
The technical indicators for Elong Power show a challenging landscape. With an RSI of 38.35, the stock approaches the oversold territory, which could indicate a potential rebound if buying interest returns. However, the average trading volume over the last 10 days stands at 412,674 compared to a significantly higher average of 2,900,583 for the past three months, suggesting diminished investor engagement in recent sessions.
Monthly performance has also been lackluster, down 12.6%, with the stock down 46.1% over the last quarter. Elong Power’s shares have sharply underperformed, registering a staggering 87.9% decline from the 200-day simple moving average.
As Elong Power adapts its approach in the wake of the reverse stock split, all eyes will be on investor reactions and if confidence can be regained in the upcoming sessions.
With no further catalyst existing beyond the reverse stock split announcement, this significant price drop reflects investor concerns about the company’s future in a competitive sector. The next trading session will be critical as traders reassess their positions and the impact of recent developments.