ZyVersa Therapeutics (NASDAQ: ZVSA) stock soared over 35% on Monday with heavy trading volume amid the absence of news.
The trading activity for ZVSA stock reached unprecedented levels on Monday, with 88,457,112 (88.45 million) shares changing hands, well above the average daily trading volume of 1.12 million. However, ZyVersa Therapeutics’ float stood at a mere 1.22 million shares.
The surge in trading volume comes amidst the absence of news from ZyVersa Therapeutics, with no press releases or filings reported. However, the company did unveil new details concerning a white paper last Thursday.
ZyVersa Therapeutics (NASDAQ: ZVSA), a penny stock, possesses inherent volatility and speculative nature, making it a risky investment proposition. The stock’s low float, coupled with its modest market capitalization of just $3.71 million and a previous closing price of 80 cents, renders it particularly susceptible to manipulation by traders aiming to artificially inflate prices before rapidly selling off their positions.
Analysts speculate that retail and day traders capitalizing on the stock’s volatility for short-term gains could have attributed to the surge in ZVSA stock on Monday, possibly employing market manipulation tactics. They recommend that prudent investors exercise caution before diving into ZVSA stock, as a potential retracement could follow the recent rally.
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