Figma Plunges 8.86% to $69.41 Amid Technical Exhaustion Signals

Figma (FIG) has experienced significant downside volatility in the latest session, closing at $69.41 with an 8.86% decline. This marks two consecutive down days totaling a 12.60% loss, indicating persistent selling pressure in the near term. The technical context suggests potential exhaustion near current levels as multiple indicators approach extreme readings.
Candlestick Theory
Recent daily candles exhibit notable price rejection at lower extremes, particularly on the latest trading day which recorded a $68.61-$76.57 range with a close near session lows. This long upper wick indicates repeated failures to sustain rallies. Previous support at $76.31-$78.24, where the price consolidated in mid-August, has now converted to resistance. The spike to $68.61 establishes a new support zone, with the $65-$68 range becoming critical for buyers to defend. A hammer formation on August 15th ($76.56 low, $79.42 close) briefly interrupted the downtrend but was invalidated by subsequent selling.
Moving Average Theory
Shorter-period averages remain in bearish alignment, with the 5-day SMA at $76.64 and 10-day SMA at $79.97 both trending downward. The price maintains position below these averages, confirming the short-term bearish bias. The lack of golden crosses and consistent trading below moving averages signals no trend reversal confirmation yet. Any recovery attempt would need to reclaim the 10-day SMA around $80 to shift near-term sentiment.
MACD & KDJ Indicators
MACD shows sustained bearish momentum, with the MACD line entrenched below both the signal line and zero. The histogram demonstrates no meaningful convergence despite the oversold conditions observed in other indicators. Conversely, the KDJ oscillator presents compelling oversold signals, with the K-value dipping below 20 during the recent lows. This divergence between MACD's persistent bearishness and KDJ's extreme oversold reading suggests indecision in momentum, where either relief rally or continuation could emerge depending on volume confirmation.
Bollinger Bands
Volatility expansion remains pronounced with bands currently at 2σ deviation of $68.69 (lower) and $91.25 (upper) around the $80 midline. The price is testing the lower band after breaking below the 20-period average, indicating a potential overshoot. The current band width remains 18% above the 10-day average, signifying ongoing elevated volatility. Reversion toward the midline could develop, but would require volume-backed stabilization.
Volume-Price Relationship
Recent distribution days show expanding volume on down moves, including the session ending August 19th with 8.96 million shares traded at a loss—double the prior session. This capitulation-style volume near multi-month lows may signal final liquidation before stabilization. However, the volume profile remains overall bearish, as up days like August 6th (28.7M shares) were quickly reversed by higher-volume selling (25.6M shares on August 7th), invalidating accumulation attempts.
Relative Strength Index (RSI)
The 10-day RSI dipped to approximately 27 on the last session, breaching the oversold threshold of 30. While this historically signals exhaustion, multiple recent violations of the 30 level without meaningful reversal (August 4th: 25, August 7th: 28) suggest the indicator may remain depressed in strong downtrends. The warning nature of this oversold reading warrants confirmation from price structure and volume.
Fibonacci Retracement
Applying Fib levels to the decisive downtrend from $142.92 (August 1 high) to $68.61 (August 19 low) yields critical retracement zones. The first significant resistance emerges at the 23.6% level ($86.14), aligning with the $87.36 August 12 swing high. A more substantial barrier exists at the 38.2% retracement ($97.00), coinciding with the breakdown area and psychological $100 resistance. The confluence of these Fib levels with prior consolidation zones creates meaningful technical milestones for any recovery.
Confluence & Divergence Summary: Multi-indicator agreement exists around potential downside exhaustion near $68-$70, evidenced by the Bollinger Band touch, 27 RSI reading, KDJ oversold signal, and volume spike. However, MACD momentum divergence, sustained MA resistance, and absence of bullish reversal patterns preclude reversal confirmation. The $86-$97 Fib zone presents strong upside resistance in any rebound scenario. Probabilistically, near-term consolidation appears more likely than sustained reversal without reclaiming $76-$78 resistance.