MSTR Stock takes Bearish Turn Amidst Support Break
MSTR stock suffered a severe setback on Monday, signaling potential further declines. A key technical indicator, the death cross, emerged on the daily chart, setting the stage for a significant drop.
The Strategy’s NAV has weakened considerably, reaching a low of $323—its lowest sence April. This represents a 40% decline from its peak in 2023. Comparatively, Bitcoin (BTC) performs better, being just 7.2% off its year-to-date high.
The latest downturn is evident in the daily chart where the Strategy share price fell below a critical support at $360.The formation of the death cross adds weight to these bearish signs, suggesting more downside pressure ahead.
- RSI hovers near oversold levels at 30.
- Percentage Price Oscillator trends lower.
With these factors aligned, a bearish outlook for MSTR looms, potentially targeting $230, a 30% drop from current levels.
Further worries center around Strategy’s modified net asset value (mNAV). This metric has plunged from 3.4 to 1.25, indicating reduced investor valuation of its bitcoin holdings.
Strategy’s funding approach through at-the-market offers amidst a falling mNAV raises concerns over continued shareholder dilution.
weakness in MSTR mirrors broader challenges faced by other bitcoin treasury firms like Metaplanet and Trump Media, reflecting a general decline in demand for crypto-focused entities.
