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A 22% Retracement for OLB Stock Price – What’s Next for the OLB Group?

Updated: 3 Nov 2021

After a lucrative day in the markets on Tuesday, the OLB Group (NASDAQ: OLB) wiped the smiles off traders' faces this morning, announcing a fundraising plan hinged on selling stock and warrants to institutional investors. OLB stock is currently 22% down premarket from the end of Tuesday’s session. 

With an annual growth of just under 40%, OLB Group has become a popular choice for bulls of 2021 – demonstrating clear advances in payment technology and becoming somewhat of a powerhouse in eCommerce capability. 

The latest spark to ignite Tuesday’s bull run came from the company announcing that its payment platform is ready to accept Mastercard Bitcoin payments. It isn’t surprising that bulls jumped at the next crypto-coated opportunity; with digitalization becoming more and more prevalent in the investment space. We are seeing more and more payment providers factor in the future of cryptocurrency, including Mastercard's move to partner with digital-asset platform Bakkt, and Marqeta's move to develop crypto-based rewards.

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Yet it all changed in the early hours of Wednesday’s premarket trading; when a company announcement regarding a stock sell-off stopped the bulls in their tracks and kicked off a sharp retracement of over 20%. 

OLB intends to raise $25 million through the stock and warrant selling, planning on issuing around 4.55 million shares at $5.50 a share to institutional investors – lower than the current price of $6.90 and substantially lower than yesterday's closing price of $8.60.

It seems that profit-takers acted swiftly this morning, not reacting kindly to the sell-off news. Yet amidst the retracement OLB still boasts an impressive model – showing 75% monthly growth and sitting comfortably above the $6.00 strong resistance zone. 

With plans to use the proceeds for further investment and expansion – we could see a lot more from this company; assuming growth in the technology sector will remain on the fast track. OLB stock is currently trading in and around the $7.00 zone – with a premarket loss of 19%. 

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