What is behind MercadoLibre stock's recent drop in value today

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MercadoLibre slides 2.12% today

Highlights

MercadoLibre's fintech platform reported robust growth, with Assets Under Management up 78% to $18.81 billion and its credit portfolio expanding 90% to $12.5 billion year over year.
Advertising revenues surged 70% and institutional interest rose, yet the stock remains under broad selling pressure following these results.
Technically, MercadoLibre trades below major moving averages with persistent bearish signals and is expected to consolidate between $1,543.06 and $1,631.93 over the next week.

Fintech growth and new buyers offset by sustained selling momentum

MercadoLibre reported significant growth in engagement with its fintech platform Mercado Pago, with Assets Under Management increasing 78% year over year to $18.81 billion and its credit portfolio expanding 90% year over year to $12.5 billion. Advertising revenue was also reported to have risen by 70% year over year. Institutional interest increased as Global X Japan Co. Ltd. raised its holdings by 36.1% in the most recent quarter, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, believes MercadoLibre’s technical outlook remains troubled. The price trades well below all major moving averages, with the MACD and ADX confirming an entrenched downtrend. He notes that negative sentiment dominates, as oversold momentum persists and sellers hold clear advantage. Despite robust fintech and advertising growth, institutional inflows have not changed the immediate bearish bias. "Sustained downward momentum and the lack of support zones signal that risk remains firmly to the downside this week."

Viktoras Karapetjanc, expert at Traders Union, sees solid fundamental progress driving long-term opportunity for MercadoLibre. He points to sharp year-over-year growth in fintech assets, credit, and advertising, as well as increased institutional confidence from Global X Japan Co. Ltd. The analyst believes these fundamentals lay the groundwork for a future rebound even as price consolidates under pressure short term. Karapetjanc remains constructive on the company’s business trajectory. "The bullish structure in revenue and institutional demand suggests further growth is a matter of time despite near-term technical weakness."

Negative momentum confirmed as all indicators flag downside pressure

MercadoLibre remains below its 20-day ($1,710.78), 50-day ($1,913.40), and 200-day ($2,176.07) moving averages, which signals persistent downward pressure across all short-, medium-, and long-term timeframes. The closest dynamic resistance from the Ichimoku indicator (Kijun) stands at $1,815.80, reinforcing a bearish technical setup with no key support levels nearby. Momentum signals are negative, with the Moving Average Convergence Divergence (MACD) showing a strong sell and the Average Directional Index (ADX) confirming an established downtrend. The Relative Strength Index (RSI) is nearing oversold at 35.43, and Commodity Channel Index (CCI), Stochastic RSI, and Bull/Bear Power (BBP) all highlight persistent oversold conditions, confirming that sellers dominate intraday movement. The Awesome Oscillator does not offer additional direction, and a downside gap of approximately $3.94 set the tone for today’s session. The stock is currently trading near the low of the day at $1,596.38, down 2.12%, with intraday volatility at 2.23%. Sellers have maintained clear pressure after the open, and the sharp downward momentum in price is in sync with all major short-term indicators.

Earlier, analysts noted that MercadoLibre was facing persistent selling pressure and a broadly bearish technical outlook. The current analysis supports this view while highlighting continued momentum weakness, signaling that traders should closely monitor the risk of further downside if the stock decisively breaks below $1,543.06 in the coming sessions.

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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