Regulatory and legal setbacks push Nvidia stock down 1.42% below key averages

Traders Union
All News
Financial News
Nvidia slides 1.42% to $168.78 today

Highlights

A federal judge certified a class action against Nvidia and its CEO over allegations of misclassified over $1 billion GPU revenue related to crypto mining in 2017–2018.
Nvidia faces ongoing regulatory scrutiny, including a prior SEC fine and increased U.S. export controls, while expanding AI partnerships in the energy sector.
Nvidia trades below key averages with bearish technical momentum and is likely to consolidate between $165 and $178, with limited rebound potential.

Legal class action intensifies as regulatory pressures and partnerships expand

On March 25, 2026, a federal judge in California certified a class of investors in a securities lawsuit against Nvidia Corporation and CEO Jensen Huang, related to allegations of misclassification of over $1 billion in GPU revenue from crypto mining within its gaming segment during 2017 and 2018. This legal development follows a 2022 U.S. SEC fine of $5.5 million for similar disclosure issues. Nvidia also expanded its partnership with SLB to develop AI infrastructure for the energy sector, alongside ongoing regulatory concerns tied to U.S. export controls to China.

Momentum weakens as oversold signals and resistance levels converge

From a technical perspective, the Ichimoku Kijun sits at $184.39, presenting immediate resistance above the current trading level. Momentum remains weak: D1 MACD and ADX are in sell and neutral zones, while the RSI (D1 at 38.91) and CCI (D1 at –170.34) show oversold conditions, accompanied by a deeply negative BBP (–1.97), indicating seller dominance. The Awesome Oscillator supports this bearish outlook, with Nvidia hovering near its daily low of $168.17 on moderate volatility.

Downside risks persist as reversal probability remains minimal

Over the short term, NVDA is expected to trade within a typical volatility band of $165 to $178, with price action likely to center around current levels. The probability of a near-term upward reversal is very low (less than 20%), suggesting ongoing downside risk. Sideways consolidation in the $165–$178 range remains the base case, with a bullish scenario requiring a daily close above $178, while a failure of support at $165 could trigger deeper declines.

Anton Kharitonov, expert at Traders Union, sees continued weakness in Nvidia as technical pressures and ongoing legal headwinds limit investor confidence. He notes that momentum indicators confirm a dominant seller presence, and recent court developments add further uncertainty. A sustained move above $178 is required to improve the outlook; otherwise, risks remain to the downside. "Until Nvidia can reclaim and hold above key resistance at $178, I remain defensive and see little reason to anticipate a reversal here."

Previously it was reported that Nvidia faced legal and regulatory pressure over alleged misclassification of crypto-mining revenues and related shareholder lawsuits. The recent class certification and persistent technical weakness now emphasize that legal headwinds and downside risk remain prominent, with sustained monitoring of both regulatory developments and the $165 support level warranted.

Source of Data: NVDA Price Analysis by TU

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.