Is SoFi Technologies Stock About To Hit Resistance?

Shares of SoFi Technologies, Inc. SOFI have been on fire, gaining about 50% in just a few weeks. But the rally may be about to end.

SoFi went public by merging with Social Capital Hedosophia Corp V, a blank-check company run by Chamath Palihapitiya. The stock was previously listed under the ticker IPOE.

Shares are close to the $23 level, and this level was support in February.

Levels that had previously been support can turn into resistance levels. This happens because investors who bought a stock while it was at support, in this case $23, regret their decision to buy after the stock moves lower. Many of these disgruntled investors decide to sell, but they're reluctant to take a loss.

As a result, they place their sell orders at their buy price. If there are enough of these sell orders, it will create resistance. This could happen with the $23 level for SoFi.