Figma Stock Plunges 5.02% Amid Bearish Signals and Death Cross Formation

Candlestick Theory
Recent Figma sessions display persistent bearish momentum, culminating in two consecutive down days (5.02% and 1.12% declines) with a notable long red candle on September 24 closing near its low ($55.21). This pattern suggests strong selling pressure. A key resistance level emerges at $59.50, where prices rejected upward moves on September 19, 22, and 23. Immediate support lies near $54.80–55.00, aligning with September 15 and 18 intraday lows. The September 18 bullish candle now risks invalidation if this support breaks.
Moving Average Theory
Figma trades decisively below all key moving averages, indicating entrenched downtrend momentum. The 50-day MA (approx. $68) and 200-day MA (approx. $82) slope downward, confirming a bearish long-term structure. The 50-day crossing below the 200-day ("Death Cross") in early September reinforced the bearish bias. Current price action ($55.21) remains ~19% below the 50-day MA, signaling strong selling pressure and limited near-term upside potential without a catalyst.
MACD & KDJ Indicators
MACD likely sustains a bearish cross below its signal line, with histogram bars in negative territory since early September. This divergence from temporary rallies (e.g., September 11’s 9.6% gain) signals fading upward momentum. KDJ oscillators hover in oversold territory (KDJ-D potentially near 20), though persistent values below 30 warn that oversold conditions can extend during strong downtrends. Neither indicator yet shows bullish convergence.
Bollinger Bands
Bands contracted sharply after August’s extreme volatility (width peaked near $25 between bands), reflecting reduced volatility. Figma’s price now presses against the lower Bollinger Band (~$54.50), typically signaling oversold conditions. However, sustained trading below this level could accelerate downward momentum. The September 24 close near the band’s lower limit highlights ongoing bearish control without immediate reversal signals.
Volume-Price Relationship
Recent declines (September 23–24) occurred on elevated volume (avg. 8.5M shares vs. 30-day avg. ~7.8M), confirming bearish conviction. Notable volume spikes accompanied major breakdowns: August 4’s -27.38% drop (56M shares) and September 4’s -19.92% fall (29M shares). Conversely, rallies like September 18’s 6.63% gain saw weak volume (12M vs. preceding 12M), undermining sustainability. Current volume patterns validate the downtrend’s integrity.
Relative Strength Index (RSI)
Using the formula RSI = [Average Gain / (Average Gain + Average Loss)] × 100 with a 14-day period, Figma’s RSI resides near 37 – approaching oversold territory but not yet extreme. Prior oversold signals (e.g., August 6 RSI ~32 during a 14.21% bounce) provided only fleeting relief, with RSI consistently rejecting the neutral 50 level since August. This suggests bearish momentum remains dominant despite nearing oversold thresholds.
Fibonacci Retracement
Drawing from the August 1 high of $142.92 to the August 4 low of $88.60, key retracement levels emerge: 38.2% ($109), 50% ($115.76), and 61.8% ($122.75). Figma failed to breach the 23.6% level ($99) during recovery attempts, confirming its strength as resistance. Current price action now tests the 0% extension level ($88.60). A breakdown below the August low risks targeting the 127.2% extension level near $48.
Confluence & Divergences
Confluence of bearish signals strengthens the downtrend thesis: resistance at $59.50 aligns with the 10-day MA and September rejection candles, while support at $54.80–55.00 matches Bollinger’s lower band and Fibonacci structure. Divergences appear in oscillators: KDJ’s oversold reading contrasts with RSI’s lack of extreme oversold confirmation and MACD’s unwavering bearish posture. Volume validates breakdowns but fails to support rallies, tipping probabilities toward continued downside absent a catalyst. Short-term bounces may occur near $54.50, but sustained trading below this level may trigger an accelerated decline toward $48–50.
Final Assessment
Figma exhibits unequivocally bearish technicals across timeframes, with momentum, volume, and trend indicators aligned. While oversold KDJ readings and proximity to lower Bollinger Bands hint at potential near-term consolidation, the absence of bullish reversal signals—especially in MACD and volume dynamics—suggests limited upside. A decisive break below $54.50 support would likely intensify selling pressure, targeting Fibonacci extension levels near $48.00.