Mullen Automotive (NASDAQ:MULN) stock has reclaimed $700 million in market cap.
Shares rose to more than $0.44 on Friday from a weekly low of $0.32 earlier that week.
Volume also surged past Mullen Automotive’s average trading volume of 218 million to more than 250 million on Friday, a trend we’ve seen this year.
The last time Mullen Automotive’s market cap hit $700 million was during the first week of January before ultimately coming down to around $500 million when shares retested $0.28 levels.
MUNL stock’s market cap is currently sitting at $706 million.
Recent positive news has triggered share prices this year to rise.
The EV company recently received a $200 million purchase order from Randy Marion Automotive Group for 6,000 EV cargo vans.
Mullen Automotive said it has until March 6 to meet the Nasdaq minimum bid requirement of $1.
If shares haven’t reached $1 by then, the company said in a statement that it intends to seek an extension from Nasdaq to meet the $1-per-share threshold.
This pressure could trigger shareholders to inject the company with enough liquidity to raise share prices before the deadline.
It also provides the company with a timeline to develop positive news and instill institutional confidence moving forward.
Will MULN shares keep rising?
Technical analysis shows us a break above $0.4180 will send shares up to retest $0.43 and $0.44 per share.
A push above $0.44 has the potential to send prices all the way up to $0.55 and eventually $0.60.
Continued momentum will send shares to retest $1 per share.
If MULN stock fails to break above $0.4180, the stock may come down to retest $0.40 flat.
Here, buying pressure will send share bouncing back up.
If buyers don’t step in, shares may slide to $0.38.
They key to a $1 billion Mullen market cap heavily correlates to how much buying pressure investors will be able to maintain.
Either institutions begin to buy in heavily again, or we see a combination of institutional buyers, current shareholders, and new shareholders stepping in.
But I’m curious to hear your thoughts on this.
What upcoming developments are you looking forward to?
Leave your thoughts in the comment section below.
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