Xpeng Shares Drop 6.7% As Technical Indicators Signal Bearish Momentum

Technical Analysis of Xpeng (XPEV)
Xpeng declined 6.70% in the latest session, closing at $22.70 with volatility between $22.42 and $23.63 on elevated volume. This analysis evaluates key technical indicators to identify potential trends and inflection points.
Candlestick Theory
Recent candlesticks reveal a loss of bullish momentum. The August 21st 11.68% surge formed a large bullish candle, but subsequent sessions showed indecision (e.g., small-bodied candles on August 25th–26th), culminating in a bearish engulfing pattern on August 27th. This signals short-term weakness. Key resistance holds near $23.75–$24.33 (August 22nd–26th highs), while support converges at $20.37–$20.74 (August 19th–20th lows).
Moving Average Theory
The 50-day moving average (MA) near $19.50 intersects below the 100-day MA (~$18.80) and 200-day MA (~$14.30), indicating an overall long-term uptrend but short-term deterioration. The current price ($22.70) remains above all three MAs, but the gap below the 50-day MA on August 27th suggests potential near-term bearish momentum. A sustained break below the 50-day MA may trigger further downside.
MACD & KDJ Indicators
MACD shows a bearish crossover, with the histogram trending negative since mid-August, signaling weakening momentum. KDJ’s K-line (35) and D-line (42) are falling toward oversold territory but lack a clear reversal signal. While KDJ suggests potential oversold conditions, MACD’s bearish alignment implies further downside risk.
Bollinger Bands
Price recently tested the lower Bollinger Band ($22.40) after breaking below the 20-day moving average. Bandwidth narrowed in late August, indicating reduced volatility before the current decline. A sustained close below the lower band could accelerate selling pressure, while a rebound toward the middle band ($23.60) may offer resistance.
Volume-Price Relationship
Volume surged during the August 21st rally (32.6M shares) and the August 27th decline (14.8M shares), validating directional conviction. However, declining volume on interim up days (e.g., August 22nd and 26th) signals tepid buying interest, undermining sustainability.
Relative Strength Index (RSI)
The 14-day RSI (currently ~42) has retreated from near-overbought levels (>70 in early August) but remains above oversold (<30). This gradual decline suggests weakening momentum without extreme bearish exhaustion. Caution is warranted, as RSI may hover in neutral territory before confirming a new directional bias.
Fibonacci Retracement
Using the swing low of $7.28 (August 28, 2024) and the high of $24.96 (August 26, 2025), key retracement levels emerge:
- 38.2%: $19.60
- 50.0%: $16.12
- 61.8%: $12.64
Recent lows near $20.37 align closely with the 38.2% retracement. A decisive break below $19.60 could expose the 50% level, while holding above $20 reinforces the uptrend structure.
Concluding Insights
Confluence of bearish signals exists: the breakdown below the 50-day MA, MACD deterioration, and volume-backed selling pressure suggest near-term downside continuation for Xpeng. Key support at $20.37–$20.74 is critical; failure here may target the $19.60 Fibonacci level. Divergence arises from KDJ nearing oversold territory, hinting at potential short-term consolidation. Overall, the technical structure leans bearish, but a reversal requires reconquering the $23.75 resistance alongside bullish volume confirmation. Risk-reward appears unfavorable for new long positions until key supports are defended or indicators show renewed strength.