Core AI Holdings Inc. Core AI Holdings (CHAI) stock came under heavy selling pressure Wednesday, giving back part of the prior session's massive gains after a capital raise announcement sparked dilution concerns.

The Miami-based AI infrastructure company surged more than 126% in the previous session, making the stock vulnerable to profit-taking after a rapid, news-light move higher.

Core AI Announces $5.4M Registered Direct Offering

Core AI issued an official press release on Wednesday announcing a securities purchase agreement with a new fundamental institutional investor.

The company is selling 1,969,444 common shares and 3,975,000 pre-funded warrants for gross proceeds of approximately $5.4 million. Core AI plans to deploy the capital toward advancing its AI technology, infrastructure initiatives, and general working capital.

The deal triggered a sharp selloff as investors reacted to the dilutive nature of the newly issued equity.

CHAI Stock: Key Technical Levels To Watch

From a trend perspective, CHAI is still trying to stabilize after a steep 12-month slide of 77.88%, and the premarket drop is pressuring a rebound that had recently lifted price above key short-term averages.

The stock is trading 15.9% above its 20-day SMA ($1.10) and 16.2% above its 50-day SMA ($1.10), but it remains 8.4% below its 100-day SMA ($1.40) and 77.4% below its 200-day SMA ($5.68), which keeps the longer-term chart biased bearish.

RSI is the cleanest momentum read right now: at 73.92, it's in overbought territory, which often signals the move has gotten stretched and is more vulnerable to pullbacks.

That lines up with the recent swing high in May and the swing low in June, plus the note that price broke below support in June—suggesting rallies can still run into supply quickly.

The short-term moving average structure is improving, with the 20-day SMA above the 50-day SMA (a bullish near-term crossover), but the bigger picture is still heavy because the 50-day SMA remains below the 200-day SMA.

In practice, that often means traders treat strength as a bounce inside a broader downtrend until price can reclaim longer-term levels like the 100-day/200-day area.

• Key Support: $1.00 — a nearby level where buyers previously stepped in, sitting close to a round-number zone and not far above the 80 cents 52-week low

CHAI Stock Price Activity: Core AI Holdings shares were down 31.18% at $1.280 during premarket trading on Wednesday.