SoFi Technologies Inc (NASDAQ:SOFI) shares are gaining ground Monday morning. The digital lender is recovering from a volatile week.

Bearish sentiment previously clouded the stock following a critical short-seller report.

Battle With Muddy Waters

SoFi stock faced heavy pressure last week. Muddy Waters Research, led by Carson Block, labeled the company a “financial engineering treadmill.” The firm alleged SoFi’s 2025 adjusted EBITDA was inflated by 90%.

Block suggested the true figure was $103 million. This sharply contradicts the reported $1.05 billion. The report further questioned “Enron-esque” off-balance-sheet structures.

SoFi management fired back on Wednesday. They characterized the claims as a “fundamental lack of understanding” of their business. The company may pursue legal action.

Management stated the report was “designed to deceive investors.” They highlighted Muddy Waters’ intent to profit from immediate short covering. “They stand to profit from their own misleading report,” SoFi added.

Rising Short Interest Data

Bearish bets against the fintech firm are increasing. Short interest recently rose from 123.21 million to 128.39 million shares. This represents 10.29% of the company’s public float.

Technical Analysis

SoFi is trading 5.3% below its 20-day simple moving average (SMA) and 30.1% below its 100-day SMA, keeping the intermediate trend pointed lower despite Monday's bounce.

Shares are up 25.55% over the past 12 months, but the stock is currently positioned closer to its 52-week lows than highs after pulling back from the $32.73 peak.

The RSI is at 28.61. Meanwhile, MACD is at -1.0809 versus a signal line of -1.1279.

  • Key Resistance: $17.50
  • Key Support: $17.00

Insider Activity Signals

Investors are also monitoring recent insider moves. CEO Anthony Noto purchased 28,900 shares at $17.32 on March 17. Conversely, CTO Jeremy Rishel executed a “sell-options” transaction totaling $4.48 million between March 16 and 18.

SOFI Stock Price Activity: SoFi Technologies shares were up 1.98% at $17.24 at the time of publication on Monday, according to Benzinga Pro data.

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