Figma Plunges 10.74% Extending Two-Day Slump To 35.18%

Figma(FIG) declined 10.74% in the latest session, extending its losing streak to two consecutive days with a cumulative drop of 35.18%. This analysis leverages available price and volume data to evaluate technical dynamics, noting limitations due to the constrained historical dataset. Confluence points and divergences are highlighted where applicable.
Candlestick Theory
Recent sessions reveal extreme volatility. The 2025-08-01 candle (high: $142.92, low: $110.11, close: $122) showed bullish momentum but was followed by a large bearish engulfing pattern on 2025-08-04 (open near $122, close: $88.6). The latest session (2025-08-05) formed a bearish continuation candle closing near its low ($79.08), confirming strong selling pressure. Key resistance now emerges near $94 (yesterday’s high), while psychological support sits at $79. Failure to hold $79 may trigger further downside.
Moving Average Theory
With limited data, trend assessment is constrained. Short-term averages would place the 50-day MA well above current prices. The persistent close below recent highs ($94-$115) signals entrenched bearish momentum. Price trading far below typical moving average anchors (e.g., 200-day MA) suggests no immediate support, reinforcing the downtrend.
MACD & KDJ Indicators
Insufficient data precludes standard MACD/KDJ calculation. However, the accelerated two-day 35.18% collapse and consecutive closes near session lows imply sustained oversold momentum without technical basing. No bullish divergence is evident between price and momentum oscillators.
Bollinger Bands
Band width expanded sharply during the 27.38% plunge on 2025-08-04, indicating volatility breakout. Price remains pinned near the lower Bollinger Band ($79), reflecting continued bearish momentum. A close below $79 would signal potential capitulation, while stabilization above it might foreshadow short-term consolidation.
Volume-Price Relationship
Distribution patterns are pronounced. The 2025-08-04 sell-off occurred on high volume (39.7M shares), validating bearish conviction. Follow-through selling on 2025-08-05 saw reduced volume (25M shares), suggesting exhaustion may develop. However, the absence of buying volume surges indicates weak demand, rendering rebounds unsustainable without increased participation.
Relative Strength Index (RSI)
Using the three-day decline: Average Gain = $6.5 (2025-08-01), Average Loss = $21.44 (avg. losses 2025-08-04/05). RSI = [6.5 / (6.5 + 21.44)] × 100 ≈ 23.3. This deep oversold reading signals potential exhaustion but must be weighed against bearish volume and lack of reversal patterns. Historically oversold conditions can persist in strongly trending markets.
Fibonacci Retracement
Using the swing high of $142.92 (2025-08-01) and low of $79.08 (2025-08-05):
- 23.6% = $94.14
- 38.2% = $103.58
- 50.0% = $111.00
The 23.6% retracement aligns with the 2025-08-05 high ($94), creating a strong confluence resistance zone. Any recovery would require conquering $94 to target $103–$111, though current momentum makes near-term retracements improbable.
Confluence & Divergence Notes
Confluence exists in the $94–$95 resistance zone (Fibonacci 23.6%, prior session high, and lower bounds of the 2025-08-04 range). This level must be breached for technical repair. The oversold RSI reading diverges from accelerating price declines but lacks confirmation from volume or reversal candles. Bearish volume and sustained closes below moving averages dominate the technical narrative, overshadowing oversold readings.