GD Culture Group Limited (NASDAQ:GDC) shares are trading higher on Friday. The move follows a massive 97% sell-off earlier this week. Investors are now eyeing a potential floor for the volatile micro-cap.

Nasdaq futures are up 0.74% while S&P 500 futures have gained 0.41%.

• GD Culture Group shares are climbing with conviction. Why is GDC stock surging?

Special Committee Formed

On Wednesday, the board of directors announced a special committee of three independent directors. Lei Zhang, Yun Zhang and Shuaiheng Zhang will lead the group. They will evaluate a preliminary non-binding proposal received on May 1.

Private Buyout Proposal

A consortium including Wealthy Concord Limited and East Valley Technology Limited initiated the bid. The group proposes a going-private transaction at $10.75 per share in cash. This offer provides a clear valuation benchmark for traders.

Strategic AI Transition

GDC is currently undergoing a strategic transition toward AI and virtual content. The Nevada-based company focuses on digital human technology for interactive entertainment.

Technical Analysis

Even after the premarket pop on Friday, GDC is still trading far below its major trend gauges — about 93.9% below the 20-day SMA ($3.66) and roughly 94.6% below the 200-day SMA ($4.16) — which keeps the longer-term chart in "downtrend first" territory.

The 50-day SMA remains below the 200-day SMA, a death cross that occurred in March.

From a structural standpoint, the stock is trying to stabilize after a swing low in March, but it's still much closer to its 52-week low (14 cents) than its 52-week high ($9.91).

• Key Resistance: $3.46 — Aligns with the 50-day SMA, a common "make-or-break" level in downtrends
• Key Support: 14 cents — The 52-week low zone that defines the downside floor traders are watching

GDC Stock Price Activity: GD Culture Group shares were up 9.67% at 17 cents at publication on Friday, according to Benzinga Pro data.

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