SOFI STOCK CRASHES AFTER BREAKING NEWS - DO THIS RIGHT NOW!

While SoFi investors, we are seeing a nasty crash happening right now for the SoFi price as its price is now at $14.15, putting in losses of over 7% just within the last few hours and officially falling down out of this massive sideways channel that its price has been in for essentially the entirety of 2026. And so, because this has been such a rough morning for SoFi, what I wanted to do for you all in today's video is break down everything. We're first and foremost going to talk about why SoFi's price is responding like it is today. Then we're going to talk about whether or not I believe this is going to continue. And then finally, I'll walk you through exactly what I'm doing in my SoFi position right now as a result of this day that we are having, which is uh pretty dang red. Okay, so we have a good bit to get into today and the price is moving really dang on quick. So I want to get this video out for you quick. So let's stop wasting time and let's jump straight on in. So, first and foremost, why is SoFi's price down 7% today? What in the world is going on? Well, what I want to say is that it's not just SoFi, it's the entire market. The S&P 500 itself is down nearly 1%. We have hyperscalers and, you know, semiconductors and even some banks, I mean, neoclouds. Basically, everything is experiencing some red today. And that's due to what we saw um happen this morning with the CPI release. So, as I told you all earlier this week, you needed to pay very close attention to this week's CPI report because this week's CPI report, which is inflation here in the United States, was going to give us a very clear indication of, you know, what we can expect from the Federal Reserve throughout the rest of this year and many other things, right? It was going to be very important. And earlier this morning, we saw CPI data come in worse than expected. So essentially going into today's CPI report, Wall Street was expecting that headline inflation was going to rise 3.6%. But it came in at 3.7%. Wall Street was expecting that core CPI was going to come in at 2.5%. It came in at 2.6%. So essentially for both core inflation and headline inflation, we saw the number come in higher than the market was expecting, which means that inflation was worse than Wall Street was expecting it to be. So as a result of that, the market went into freakout mode. The market went into panic mode and companies that are very very um exposed to inflation rates like SoFi are getting absolutely battered. Let me explain why. So think about the chain of events here, right? If inflation is elevated, if it's higher and coming in higher than expected, what does that mean? Well, it means that the odds that the Federal Reserve hikes interest rates to combat inflation are naturally going to go up. And this is something that's not subjective. This is objective. If we actually go look at the CME Fed Watch uh group tool earlier this morning before this inflation report, there was only a 20% chance that the Federal Reserve hiked interest rates in the meeting that's approaching in just 14 days from now. After that inflation report, the odds of it have now doubled to 41%. So it went from 20% to 40% just as a result of this one CPI inflation read. And that makes a lot of sense. If inflation is higher and it's more sticky, the Fed may need to go in and become more aggressive to combat it. So, as a result of this, seeing of course the odds of the Federal Reserve hiking interest rates going up, companies who that negatively impacts are going to go down. SoFi is one of them. Think about why. One of the major reasons that SoFi makes its money is or one of the major ways that SoFi makes his money is through its loans, right? Well, in an environment in which the interest rates are higher, guess what? People are going to just take less loans in general because the loans are becoming more expensive to not only service but to just have as a whole. And also, people are going to refinance their loans less because who wants to refinance loans into an environment in which rates are higher? And so, what ends up happening is that SoFi makes less money from loans and from um refinancing, right? Now, alternatively, another piece of that that some people don't consider is that as some people are forced into refinances, well, guess what? Their loans are going to start to become more expensive. And that's going to be more difficult on these people who have these loans and some people aren't going to be able to pay them. Next thing you know, defaults and all these sorts of things start to get a little bit more problematic, which is also negative for a financial institution like SoFi. Now, the second side that I'm not as worried about, but in general, an environment in which rates are going higher is usually a net negative for SoFi. And this is the exact reason as to why SoFi's price has been performing so poorly throughout the majority of this year in the first place is because we are in an environment that is not conducive for growth for a financial institution like SoFi. Just that simple. The times in which SoFi has performed the best are the times in which we are in the opposite environment in which interest rates are maybe coming back down and you know people are refinancing and people are taking out loans and they're making money from loan originations right like that's where you see SoFi performing the best. So naturally the flip side of that which is what we are in right now in which interest rates are becoming you know potentially going higher and becoming more expensive and now you have to start worrying about you know consumer defaults and all these sorts of things through forced refinancing or as is maybe not refinancing but it's like as their um their loans come term and they have to re-up them. Um yeah you end up in an environment guys like this. It it makes perfect sense. So all in all, the reason as to why you're seeing the market down is because of CPI, but companies like SoFi are taking it worse because of their exposure to interest rates which are impacted by inflation rates. Does that make sense? And so you end up with a day like today. Now the next question that I want to answer for a lot of people is, you know, okay, well is this going to continue? Are we going to see SoFi continuing to crash? Is this just like a flash in the moment sort of thing? Where do we go from here? Well, one thing that I want to make very clear is there's really no way of knowing what the Federal Reserve is going to do, how long they're going to hike interest rates for. And remember, like the reason why inflation is elevated right now is because of the Iran conflict, which could in theory end at any given moment. And when the Iran conflict does actually end and oil prices do start coming back down, what I believe is going to happen is that SoFi is going to see price reversal. I think we are going to see the market going, "Oh, this opens up the door for the Fed to stop being so aggressive." Maybe eventually way down later down the line, cut interest rates and people might start trying to frontr run that and stop selling off their SoFi. They may actually start buying a bit of SoFi. So that could happen at any given moment. So you can never truly know like, okay, is SoFi going to continue lower or not? That's impossible. But one thing that I will say is that from a technical perspective, I actually do think that SoFi is now entering into a major zone of support that easily could help the price stop falling decently soon. Okay. Now, the level of support that I'm talking about is this one down here. You see this low that SoFi put in way back here back in April of 2025 at $8.66. And then you see this all-time high it put in right up here around $32 back in November of 2025. Well, if you connect that low to that high with your Fibonacci tool, what it does is it gives you your golden Fibonacci zone. And the golden Fibonacci zone for SoFi ranges between $14.36 and $11.50. And anyone who knows technical analysis knows that the golden zone is one of, if not the strongest zone of support that any asset will see on its chart. Period. And what that means is that if the buyers were going to step in anywhere, the buyers would be stepping in in this golden zone to try to help Zofi's price find some stability and continue back up towards the top side. And so the fact that we are already in that zone now that it's falling out of the sideways structure makes me go, look, I think this may actually start to kind of bottom out sooner than a lot of people are expecting. I see a lot of people calling for $8. I see a lot of people calling for $6 on X right now. I'm not convinced of that quite yet. I believe that since we're in the golden zone, buyers are really going to step in and start trying to absorb some of the sell pressure. And although SoFi easily could trend lower into this golden zone, I'm not personally expecting it to just nuke straight down through this golden zone. Now, look, I could be wrong and there's a world in which I'm wrong. And if SoFi does fall through this golden zone, then the breakdown target becomes $8.64. However, I'm just not convinced of that quite yet. It would take me just seeing the buyers not stepping in and no signs of reversal, no signs of buyer support, just nothing but sell pressure to convince me of that. Okay. So, from a technical perspective, I actually do think that there's a world that, you know, between where we are now and say $11.50, SoFi does start to try to find some sort of bottom and maybe even try to go for some sort of reversal back up towards the top side. Another thing that makes me feel pretty decently confident about that is the fact that if we turn on the TH toolkit, you can see what's happening right now. Going into today, that the daily HCI was at a minus 3.9. I believe that after today, this thing's going to dive into the -4 to -5 territory, which is historically when SoFi will start trying to find some sort of bottom. Now, we're not getting bullish divergence quite yet down here. That's something to consider, right? This definitely something to pay attention to because the bullish divergence is usually the reversal signal. So, we may need to continue a little bit lower and start actually creating that bullish divergence. But when I look at the toolkit on the daily time frame, it's getting extremely overextended. And I easily think it may try to find some support the lower that it goes because of that overextension. The final thing that makes me feel pretty confident about this is the fact that if we look at our Fibonacci extension zone, let me get rid of all this. If we look at our Fibonacci extension zone from this low to this high right here. So the low to the high. What you can see is that SOFI's extension zones range between 1390 and 1268. This is generally as a result of this move to this move where Sofi's price will go before trying to see some sort of at least short-term relief rally. And this extension zone down here rests in that golden zone. And so my perspective is that although SoFi easily can trend a bit lower, I do think that the buyers are about to start really stepping in to support SoFi's price to slow down this pullback and maybe even use it to continue towards, you know, back towards the top side. Look, now that SoFi has gotten a reversal here and a rejection, SoFi now has a trend line, guys. Right? So has a very, very clear trend line as a result. Boom. Look at this. We had a high, a high, a high. Now there's a trend line. And I think at some point SoFi is going to try to find some support and try to go back towards that trend line. And this golden zone is absolutely strong enough to cause something like that to happen. So it makes me feel very comfortable and confident in saying that I don't think we're just nuking straight down to eight bucks or something along those lines. I may be wrong. I'm just a human. I can't promise that this is true and you definitely don't want to take this as financial advice. But that's just my perspective on this thing. Okay. Now, what if I am wrong? This is something that I always always always think about. What if I am wrong and what if SoFi does just absolutely nuke through this golden zone? What do I think happens then? Well, I think it's reasonable to assume that SoFi is going to come back to revisit that previous low that it created on liberation day. Generally, what happens is if you fall through the golden zone, you will come all the way back down and revisit the low that created the golden zone. Remember, it was this low to this high up here. So, this is the low that created the golden zone. That is where I would assume that SoFi's price is going, which is about $8.50 to $8.60. 60. Okay. So, it definitely can get ugly. If I am wrong and SoFi comes through this golden zone, it could easily come down towards $8.60. I'm just not convinced that that's that's on the table yet. Now, let's say SoFi goes boom, rally, comes back up towards that trend, right? That trend line, then gets rejected again. Yeah, now this is in play for sure. Now, this is in play. I just think it's more likely that we see some sort of slowdown in relief prior to that happening and we'll be able to see it coming from a mile away. Do you get what I mean? So, as a result of this, I'm actually going in and I'm still buying soy. Um, I'm comfortable dollar cost averaging so far in this golden zone. We are now below my average cost. You guys know my average cost is like $16.30 or so roughly. I'm down 12% on my SoFi position now as a result of this pullback that it's seeing. So, I am comfortable going in and dollar cost averaging into this dip. I've been doing a good bit of buying on SoFi on the way down, and I'm going to continue to buy SoFi on the way down. Buying in the low 15s and the high 14s is where I've been buying recently. I'm going to continue to buy SoFi as it continues lower. Now that it's down actually at 1421, I am going to go in and just do another small purchase right now for 300 bucks of some SoFi just to continue the discipline, just to continue getting the purchases going and reducing my average cost, getting my shares in. Every time I do that, it reduces my average cost. And that's my goal because I am still very confident that there will come a day eventually in which the environment we're in right now shifts where inflation start oil comes down, inflation comes down, the Federal Reserve stocks stops hiking interest rates. People can see a future maybe 6 to 12 months down the line that the Fed maybe even cuts interest rates from that point which could be a few years from now. And as a result of it, people start looking at companies like SoFi, the fintech companies that are very interest rate exposed as opportunities. because they've been getting battered so hard. I think that day will come and my goal is to be in position when the day comes. I'm not going to wait for the day to come because it might happen out of nowhere. I want to be ready now. So, I'm going to continue to dollar cost average. My average cost is now right here. I'm very happy with that. This is where my average cost is. In the grand scheme of things, that's not so bad. And I'm going to continue bringing my average cost down and building into my position as SoFi heads lower and lower, especially now that it's in the Fibonacci golden zone. Okay. So, I'll keep you updated as it does play out. It definitely may feel a bit scary. It definitely doesn't feel good to see SoFi putting in these new yearly lows, but I'm telling you, it all makes sense, one as to why it's pulling back, but I don't think this is a forever thing, and I think there could be some great opportunities presenting themselves here, which is the reason why I'm going in and doing some dollar cost averaging, but not to say that you should yourself. This isn't financial advice. So, I'll keep you updated on it as it does play out. Um, if you guys have been enjoying all the updates recently, please do let me know by liking today's quick video. And I can't wait to see you all in the next one.