Meme Mania Fuels 1,000% OPEN Stock Soar Then 50% Crash—Test Ahead!
As Opendoor Technologies soared on social media, a quiet stock suddenly became the talk of Wall Street, but it is now plunging this week.
Quick overview
- Opendoor Technologies experienced a massive rally, surging nearly 1,000% from $0.50 to $4.98 in July due to social media buzz.
- The stock's rise was fueled by viral posts on trading forums and a bullish endorsement from EMJ Capital.
- However, the stock faced a significant pullback after hitting a key resistance level, dropping to $2 and erasing over 60% of its gains.
- Investors are now closely watching for Opendoor's upcoming second-quarter results, which could impact the stock's future trajectory.
As Opendoor Technologies soared on social media, a quiet stock suddenly became the talk of Wall Street, but it is now plunging this week.
Meme Momentum Lifts Opendoor to Eye-Popping Heights
Retail traders have ignited a massive rally in Opendoor Technologies (NASDAQ: OPEN), pushing the stock into the spotlight with a jaw-dropping rebound this July. What began as a relatively quiet year turned chaotic in the best way for bulls, as the stock exploded from just $0.50 at the end of June to a stunning intraday peak of $4.98 on Monday—marking a surge of nearly 1,000%.
Social Media Sparks the Frenzy
This dramatic ascent was powered by a renewed wave of meme stock energy, fueled largely by viral posts on retail trading forums like Reddit’s WallStreetBets. One particular post titled “OPENDOOR — this isn’t just a pump” caught fire on Friday, earning hundreds of upvotes and bullish comments. The post framed OPEN as a speculative but potentially undervalued turnaround play, attracting waves of new retail interest.
Adding further fuel to the fire was a bullish call from EMJ Capital, a firm known for correctly identifying Carvana’s rebound. Their public endorsement gave the move added credibility in the eyes of speculative traders, pulling more buyers into the momentum-driven surge.
OPEN Chart Weekly – Rejected at the 200 SMA
However, the euphoric run faced a serious test at a key resistance level. As OPEN shares touched $5, they encountered the long-term 200-week simple moving average—a technical barrier that proved too strong. The rejection at that level triggered a rapid pullback, with the price plunging to $2 at one point, wiping out over 60% of the gains from Monday’s high. Still, the stock closed at $2.29, preserving a remarkable 460% gain for the month.
Long-Term Outlook: Volatility and Caution
Traders and investors are now watching to see if OPEN can reclaim and break above that $5 threshold, which would open the door—pun intended—to further upside, with $5.50 representing a key target from the 2023 highs. On the flip side, any sustained move lower could return the stock to the broader downtrend that began after its all-time high of $39.24 in February 2021.
While little has fundamentally changed in Opendoor’s business operations, the stock’s July surge has captured the market’s attention. Investors hoping for more clarity won’t have to wait long—Opendoor is scheduled to report its second-quarter results after the market closes in August, which could either validate or challenge the meme-fueled optimism.
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