MicroStrategy Slumps 4.17% Amid Sustained Selling Pressure Near Key Support

Strategy (MSTR) declined 4.17% in the latest session, closing at 343.20 after trading between 339.21 and 351.51, indicating sustained selling pressure as it approaches a critical short-term support zone.
Candlestick Theory
Recent candlestick patterns reveal a volatile consolidation phase. The 2025-08-19 session formed a bearish shooting star (high: 364.63, close: 336.57), signaling rejection near $365 resistance. This was followed by a hammer pattern on 2025-08-22 (low: 332.61, close: 358.13), suggesting tentative support near $333. However, the subsequent bearish engulfing candle on 2025-08-25 (open near 351.51, close: 343.20) confirms resistance at $352–$360. Immediate support is established at $332–$340, with resistance tightening around $360–$365. A break below $332 may trigger accelerated selling.
Moving Average Theory
The 50-day MA (centered near $375) and 100-day MA (near $365) both slope downward, confirming a bearish intermediate trend. The 200-day MA (approximately $340) offers marginal support but lacks bullish conviction as price trades below all short-term averages. A sustained move above $365 would be needed to challenge the bearish structure. The 50/100-day death cross in late July further validates downside momentum dominance.
MACD & KDJ Indicators
MACD remains entrenched in negative territory with the signal line above the MACD histogram, underscoring bearish momentum. KDJ shows conflicting signals: the %K line dipped below 20 (oversold) on 2025-08-21 but rebounded weakly. Recent divergence emerged on 2025-08-22 when price rallied to $358 while KDJ failed to exceed prior highs, signaling waning upward momentum. This divergence resolved bearishly with the latest 4.17% drop, suggesting further downside risk.
Bollinger Bands
Bands contracted sharply in mid-August (bandwidth narrowing 15% over 5 sessions), culminating in an August 22 volatility expansion. Price briefly challenged the upper band at $359 but was rejected, retreating to the middle band ($345). Current positioning near the lower band (~$338) indicates oversold conditions but requires confirmation. The bands' slight downward slope aligns with broader bearish bias, though a compression-rebound sequence may develop if $332 holds.
Volume-Price Relationship
Distribution is evident during declines: the 4.17% drop on 2025-08-25 occurred on above-average volume (10.9M shares), validating selling pressure. The 6.09% rally on 2025-08-22 saw robust volume (17.4M shares), but subsequent failure below $360 suggests absorption of demand. Notably, volume spikes consistently accompany breakdowns below $340 (e.g., 2025-08-19: -7.43% on 18.3M shares), reinforcing this level as a distribution zone.
Relative Strength Index (RSI)
The 14-day RSI oscillates near 45, reflecting neutral momentum with a slight bearish tilt. Recent lows tested 30 (oversold) on 2025-08-19 and 2025-08-21, but swift rebounds lacked follow-through, indicating weak accumulation. Bearish divergence materialized in early August when RSI peaked at 65 against a lower price high, foreshadowing the current pullback. RSI must hold above 40 to prevent a retest of oversold territory. Persistent sub-50 readings align with the downtrend.
Fibonacci Retracement
Applying Fibonacci to the June-2025 swing high ($455) and August low ($332), critical retracement levels emerge: 38.2% ($376), 50% ($393), and 61.8% ($411). Price stalled precisely at the 38.2% level ($376) in late July, affirming resistance. Current trading below the 23.6% level ($353) reinforces bearish near-term bias. Confluence exists at $332 (swing low) and the 0% retracement—failure here may target $300–$310. Upside requires clearance of $353 to challenge $376.
Confluence and Divergence
Strong confluence supports the $332–$340 zone (candlestick hammer, 200-day MA, Fibonacci 0% level). Breakdown below $332 would align bearishly with MACD negativity, volume distribution, and RSI deterioration. Key divergence occurred via KDJ’s failure to confirm the August 22 rebound, resolved by the subsequent selloff. Bearish resolution favors a retest of $332, though oversold Bollinger Band positioning and RSI near neutrality suggest limited downside momentum without new catalysts.