Figma Extends Losses To 13.52% As Bearish Momentum Persists Below Key Support

Figma(FIG) concluded the most recent session with a 0.17% decline, extending its losing streak to two days and marking a cumulative 13.52% drop during this period. The technical analysis below employs the provided historical data in chronological order (July 31, 2025, to August 8, 2025), noting the inherent limitations of the abbreviated dataset for certain methodologies.
Candlestick Theory
Figma's candlestick patterns reflect intense volatility and a dominant bearish structure. The August 1 high of $142.92 established a formidable resistance level, while the August 6 low of $76.65 represents critical near-term support. Recent sessions exhibit indecision: the August 7 candle showed an extended upper wick (rejection at $87.88) and closed near its low ($78.24), signaling persistent selling pressure. The August 8 session formed a near-doji with a narrow range ($78–$82.6), suggesting potential exhaustion near the $78 support zone. A sustained break below $76.65 could accelerate declines, whereas a close above $87.88 may indicate temporary stabilization.
Moving Average Theory
The abbreviated data window restricts conventional moving average analysis, as 50/100/200-day calculations require extended history. Nonetheless, the sequence of lower highs since August 1 confirms a pronounced short-term downtrend. The most recent close ($78.11) sits well below the weekly high of $142.92, underscoring persistent bearish momentum without counter-trend signals.
MACD & KDJ Indicators
Insufficient data precludes traditional MACD/KDJ construction. However, momentum characteristics are observable: the sharp 27.38% decline on August 4 (close: $88.6) on moderate volume signaled bearish conviction, while the 14.21% rally on August 6 (close: $90.32) lacked volume confirmation, rendering it a short-lived rebound within the downtrend. This aligns with KDJ principles, where unsustainable rallies in bearish phases often fail at resistance.
Bollinger Bands
A 5-day Bollinger Band analysis (given data constraints) places the August 8 close at $78.11, marginally above the lower band (72.03), while volatility contracts (bandwidth: 21.67). This contraction near support hints at reduced selling intensity. A close below the lower band may foreshadow an oversold bounce, whereas band expansion on renewed volume could validate directional momentum.
Volume-Price Relationship
Volume trends strongly validate price movements. The downdraft from August 1–5 saw escalating volume (peak: 56.35M shares), confirming bearish conviction. Conversely, the August 6 rebound occurred on reduced volume (28.7M vs. prior 39.7M), undermining its sustainability. Most notably, the past two sessions registered sequentially lower volumes (14.15M → 7.35M) near the $78 support, suggesting waning sell-side momentum and a potential consolidation phase.
Relative Strength Index (RSI)
A 5-day RSI approximation yields approximately 34.1 (method: average gains/losses over 4 price changes). While nearing oversold territory (<30), it avoids extreme readings, and the absence of bullish divergence tempers reversal expectations. This neutral momentum reading aligns with recent sideways price action, warranting caution against premature long entries despite proximity to oversold thresholds.
Fibonacci Retracement
Applying Fib levels to the downtrend from $142.92 (August 1 high) to $76.65 (August 6 low) reveals precise confluences. The August 6 rally peaked at $90.32—immediately testing the 78.6% retracement resistance ($90.84). This rejection intensified selling pressure, leading to subsequent lows. Current prices linger near the 100% level ($76.65), with a breakdown opening risk toward the 127.2% extension ($65.50), while reclaiming $82.60 (38.2% retracement of the recent leg down) may signal stabilization.
Confluence and Divergences
Notable confluence emerges at the $76.65–$78 support zone, corroborated by: 1) Bollinger Band proximity, 2) declining volume, 3) near-oversold RSI, and 4) the 100% Fibonacci retracement level. Divergence is observed between price and volume during the recent selloff—reduced volume suggests weakening bearish conviction. While no definitive reversal signal is present, this confluence may foster near-term consolidation. A decisive break below $76.65, particularly on expanding volume, would invalidate this thesis and signal continuation.