CoreWeave Extends Slide With 4.99% Drop As Technicals Signal Persistent Bearish Pressure

CoreWeave (CRWV) Technical Analysis
CoreWeave (CRWV) declined 4.99% to $120.34 in the latest session, extending a two-day losing streak totaling 9.79% amid elevated trading volumes. This analysis evaluates key technical indicators to contextualize the current price action.
Candlestick Theory
Recent sessions exhibit bearish momentum, with a confirmed "bearish engulfing" pattern formed on September 25–26. This two-candle reversal signal—where the second candle’s body completely swallows the prior session’s gains—suggests mounting selling pressure. Key support is now established near $118–120 (recent swing lows and the August 19 low), while resistance converges around $133–135, aligning with September’s failed breakout levels and the 50-day moving average.
Moving Average Theory
The 50-day MA ($132.80) crossed below the 100-day MA ($138.20) in mid-September, confirming a bearish near-term bias. The 200-day MA ($118.50) now serves as critical long-term support. Current price action resides below all three MAs, with the widening gap between the 50/100-day and 200-day MAs reflecting accelerating downtrend momentum. A sustained break below the 200-day MA would signal structural weakness.
MACD & KDJ Indicators
The MACD histogram remains in negative territory, with the signal line diverging further below the zero line since early September—a classic bearish confirmation. Meanwhile, the KDJ oscillator shows the %K line (21) and %D line (28) entrenched in oversold territory (<30). While this hints at potential short-term exhaustion, neither indicator exhibits bullish divergence, suggesting downward momentum may persist before stabilization.
Bollinger Bands
Bollinger Bands expanded sharply during September’s sell-off, reflecting rising volatility. Price has consistently tested the lower band since September 22, with no closing recovery above the middle band (20-day SMA at $128.40). The absence of "squeeze" conditions—bands remain 15% wider than the 30-day average—indicates continued directional volatility, favoring bears.
Volume-Price Relationship
Volume surged 48% during the two-day decline (September 25–26), confirming bearish conviction. Distribution patterns dominate since mid-August, with above-average volume consistently accompanying down days (e.g., September 22’s 6.7% gain occurred on 40M shares vs. September 25’s 5.05% drop on 48.9M shares). This volume asymmetry undermines rebound sustainability.
Relative Strength Index (RSI)
The 14-day RSI (28.6) resides deeply in oversold territory (<30), theoretically signaling exhaustion. Historically, similar RSI extremes in April and July preceded tradable bounces. However, this signal lacks corroboration from MACD or volume patterns. Investors should treat it as a warning rather than a reversal catalyst, especially given strong bearish confluence.
Fibonacci Retracement
Applying Fibonacci to the June 20 high ($183.58) and March 28 low ($40.00): the 38.2% retracement ($130.80) was decisively breached during September’s downturn. Price now tests the 50% retracement ($111.80)—a pivotal support zone reinforced by the 200-day MA and June’s consolidation low. A breakdown here would expose the 61.8% level ($92.90).
Confluence and Divergence
Strong bearish confluence appears near $118–121 (200-day MA, Fibonacci 50% level, psychological support) with a sustained break potentially triggering accelerated selling. Divergence exists in oversold KDJ/RSI readings against unresolved MACD and volume bearishness, creating friction but lacking reversal catalysts. The dominant trend favors downside continuation absent a recovery above $133–135 (resistance cluster).