NVDA selloff continues as pressure builds at $193.41 support

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Nvidia drops 4.26% to $198.05 today

Highlights

Nvidia invested $1 billion in Naver to co-develop AI data centers, expanding infrastructure and reach in key Asian markets.
The company formed the Open Secure AI Alliance with over 30 firms and partnered with Safe Superintelligence Inc. to advance secure and foundational AI solutions.
Nvidia trades under strong selling pressure, with momentum and volume indicators bearish, and a projected range of $193.41 to $207.41 for the next 2–3 days.

Strategic expansion initiatives met with sustained share price pressure

Nvidia agreed to acquire a $1 billion stake in South Korea's Naver to jointly develop artificial intelligence data centers, securing infrastructure for future large-scale AI deployments and expanding its reach across key Asian technology markets, according to Gurufocus. The company also launched the Open Secure AI Alliance with more than 30 firms to accelerate the development of security-centric AI tools, which may help establish Nvidia as a foundational player in the trusted AI ecosystem, as reported by Seekingalpha. Additional initiatives include a long-term partnership with Safe Superintelligence Inc. to spur advanced AI research and the release of enhanced engineering libraries intended to deepen the firm's technical capabilities, with sources from Nvidianews Nvidia and Globenewswire. These actions broaden strategic and technological channels for Nvidia, though price action has remained under broader selling pressure.

Short-term bearish signals amid oversold readings and weak momentum

On the technical front, NVDA has closed below both its MA-20 and MA-50 on the hourly chart, while retaining support above the MA-200 on the daily timeframe. Resistance is identified at the Ichimoku Kijun level of $209.6, which acts as a critical near-term ceiling. Momentum indicators are signaling weakness: RSI and CCI are both in 'Sell' territory, with Stochastic RSI neutral, while MACD and ADX continue to read neutral, reflecting a lack of a strong short-term directional trend. Bull/Bear Power is in deep oversold readings, indicating notable intraday seller dominance, and Awesome Oscillator supports this negative bias, consistent with the sharp downside price gap.

Downside risk prevails as weak momentum limits rebound prospects

In the next two to three trading sessions, NVDA is expected to consolidate within a range of $193.41 to $207.41, with very low probability assigned to an upward breakout. Downside risk remains elevated under current momentum conditions, while a stabilization scenario envisions short-term price action staying between recent support and resistance. A bullish reversal would require a move above $209.6, but a break below $193.41 could signal further losses, making further downside the most likely near-term outcome.

Anton Kharitonov, expert at Traders Union, notes that despite Nvidia’s strong push into AI infrastructure and partnerships, negative sentiment has defined recent price action. He sees technical patterns reinforcing seller dominance, with key resistance unbroken and downside risk prevailing. Base case remains a range near support with low odds of bullish reversal. "Unless NVDA reclaims $209.6, I see little reason to turn positive on the short-term outlook."

Earlier, analysts noted that Nvidia's capital initiatives and expanding technology partnerships positioned the stock in a key consolidation phase, with the outcome hinging on a potential breakout or breakdown. With current downside momentum intensifying and technical signals skewed negative, traders should closely monitor for a breach below $193.41 as confirmation of further near-term weakness.

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.