Selling pressure pushes MercadoLibre lower in today trading

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MercadoLibre slides 5.59% to $1,677

Highlights

MercadoLibre reported approximately 45% year-over-year revenue growth with full year 2025 revenue of $28.89 billion and net income of $1.997 billion.
New records in both commerce and fintech user growth were set, though higher investment spending reduced profit margins; insiders and major institutions increased shareholdings.
MELI trades at $1,677.61, well below all key moving averages and with bearish momentum, projecting high probability for further declines toward $1,454 near-term.

Record revenue and user growth offset by rising investment costs

MercadoLibre reported approximately 45% year-over-year revenue growth in its latest earnings, with full year 2025 revenue of $28.89 billion and net income of $1.997 billion. The company set new user and revenue records in both its commerce and fintech businesses in the fourth quarter of 2025, though increased investment expenditures resulted in thinner profit margins. Recent insider activity included the purchase of 57 shares by Senior Vice President and Chief Accounting Officer Marcelo Melamud, while institutional investors such as Waverton Investment Management Ltd and Eagle Capital Management raised their stakes, accompanied by the company's ongoing expansion of artificial intelligence usage across its platforms, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees ongoing weakness in MercadoLibre as the share price sits well below all major moving averages. He notes that revenue growth remains strong, but inflated expenditures have hurt profit margins and compounded existing selling pressure. Recent insider and institutional activity has not stabilized sentiment, with technicals reinforcing persistent bearish momentum. Multiple oversold readings fail to spark a reversal, as Kharitonov views fundamentals as vulnerable due to margin compression. "With downside momentum prevailing and no strong catalysts in sight, I remain highly cautious — any optimism looks premature at these levels."

Viktoras Karapetjanc, expert at Traders Union, believes MercadoLibre retains a bullish structure despite current volatility. He highlights robust year-over-year revenue growth and record-setting fintech and commerce metrics as reasons for optimism. Karapetjanc points to rising institutional interest and the company’s AI-driven expansion as supporting long-term opportunity. He expects that increased investment positions MELI for stronger future growth, viewing current declines as a setup phase rather than a reversal. "These conditions offer multiple setups for forward-looking investors — I see further growth emerging after the current consolidation resolves."

Jainam Mehta, market strategist, sees MELI caught in a sharp technical downtrend, with multiple indicators aligning to the downside. He observes that volatility is up and oversold signals are building, making the risk of a further selloff palpable. Mehta notes the gap down and tight forecast band suggest tactical range trading, with capital protection essential. "A contrarian might watch for signs of exhaustion near $1,454, but for now, scenario-based discipline is key."

Bearish momentum intensifies with aligned technical breakdowns

MELI is trading at $1,677.61, which is significantly below its MA-20 ($1,959.37), MA-50 ($2,039.27), and MA-200 ($2,253.19). This positioning reinforces sustained pressure from sellers across the short, medium, and long-term trends, with the nearest dynamic resistance currently set by the Ichimoku Kijun at $1,998.12.

Daily momentum remains bearish as confirmed by the negative MACD and moderate ADX reading, depicting a strengthening downward trend. Oversold conditions are pronounced on the Stoch RSI, CCI, and BBP, signaling a dominance of sellers though RSI hovers just above oversold at 32.73. The Awesome Oscillator also aligns with the bearish trend. There was a notable gap down at today’s open ($1,777.00 to $1,686.90), with the current price near the session’s low and volatility remaining high. Persistent downward pressure has characterized intraday dynamics, with momentum and oscillators largely aligned to the downside.

Previously it was reported that MercadoLibre Inc. is trading well below its major moving averages, with a sharp daily decline and persistent selling pressure reflected in negative momentum indicators such as MACD, ADX, and low RSI. The asset faces dynamic resistance at the Ichimoku Kijun with no significant support above the current price, and while several oscillators indicate oversold conditions, overall technical signals remain decisively bearish.

Source of Data: MELI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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