CoreWeave Shares Plunge 17.78% In Two Days Amid Heavy Trading Volume

CoreWeave (CRWV) shares declined 9.00% to $125.84 in the latest session, marking a two-day cumulative drop of 17.78% amid elevated trading volumes of 15.57 million shares. This substantial pullback establishes the immediate context for our technical assessment across multiple frameworks.
Candlestick Theory
Recent price action displays pronounced bearish momentum, with the last two sessions forming large-bodied red candles closing near session lows ($138.29 → $125.84). The July 11 candle’s long upper wick (rejecting $136.36) signals persistent selling pressure. This pattern resembles a bearish continuation sequence following the brief consolidation of July 9. Critical support now emerges at $125.67 (July 11 low), while resistance converges near $136.01 (July 10 low) and $153.05 (July 9 close).
Moving Average Theory
The 50-day moving average (approximated near $142) crossed below the 100-day MA (∼$148) in early July, confirming a bearish near-term bias. Current trading below all key moving averages (50/100/200-day) reflects entrenched weakness, with the 200-day MA (∼$110) offering the next structural support. The accelerated deviation below the 50-day MA suggests growing downside momentum.
MACD & KDJ Indicators
The MACD histogram demonstrates expanding negative momentum, with the signal line maintaining a bearish crossover below zero. Concurrently, the KDJ oscillator reveals an oversold but deteriorating condition – the K-line (∼15) and D-line (∼22) are plunging steeply without convergence. This synchronous bearish alignment suggests weak near-term reversal potential despite oversold readings.
Bollinger Bands
Bollinger Band width expanded 38% during the two-day selloff, signaling a volatility breakout. Price now trades near the lower band ($124), typically indicative of oversold conditions. However, the absence of reversal signals (e.g., hammer candles) and bands widening downward imply ongoing bearish control. A sustained break below $124 would activate additional downside targets.
Volume-Price Relationship
Distribution patterns are evident, with the two down days generating significantly above-average volume (16.52M and 15.57M shares versus 30-day avg ∼14.8M). This high-volume rejection of recovery attempts at $136-$153 confirms institutional distribution. Volume profiles now suggest $125-$126 as a battleground zone requiring monitoring for accumulation signals.
Relative Strength Index (RSI)
The 14-day RSI has plunged to ∼26, entering oversold territory. While historically such levels preceded rallies (e.g., the late-May rebound from RSI=28), current momentum divergence is absent – price and RSI are declining in tandem. Traders should note RSI can remain oversold during powerful downtrends; confirmation from price reversal signals is essential.
Fibonacci Retracement
Applying Fib levels to the March-April trough ($35.42) and the June peak ($183.58): the 38.2% retracement ($128.50) failed to hold during the July 11 decline. The 50% level at $109.50 now becomes the primary downside target, aligning with the 200-day MA ($110). Any recovery must reclaim $136 (23.6% retracement) to suggest bearish exhaustion.
Confluence & Divergence Assessment
Confluence of bearish signals is notable: 1) Price below all moving averages, 2) Expanding MACD negativity, 3) High-volume breakdown below Fib support, and 4) Oversold but non-divergent RSI/KDJ. A critical divergence exists at $125-$128 support, where Bollinger Band oversold conditions conflict with KDJ’s continued descent. Resolution below $125 would activate the $110-$109.50 confluence zone (50% Fib + 200-day MA), offering the next potential stabilization area. Until price reclaims $136, technical structure favors continuation patterns over reversal scenarios.