Nvidia stock drops as seller pressure persists and downside momentum builds

Traders Union
All News
Stocks
Nvidia slides 1.32% to $214.37 today

Highlights

Nvidia stock lost $365 billion in market value over the past week as investors reduced exposure and took profits.
Nvidia secured financing partnerships with major financial institutions to expand its AI infrastructure, aiming to support long-term growth.
Shares are trading under short- and medium-term technical pressure, with a projected range of $207.35 to $221.39 and a 78% probability of further downside.

Market value slump amplifies de-risking amid new AI funding moves

Nvidia’s market value contracted by $365 billion over the past week, a shift that signals large-scale de-risking and a notable retreat in investor capital, according to Invezz. This steep loss in capitalization points to reduced market liquidity and highlights profit-taking after recent gains. At the same time, the company partnered with major financial institutions to finance the buildout of its AI infrastructure, an initiative noted by Gurufocus that may support long-term business prospects, though price action has remained under broader selling pressure.

Key resistance and oversold signals intensify downside momentum

On the technical front, NVDA is trading below the MA-20 ($217.31) and MA-50 ($223.27) on the hourly chart, retaining support above the MA-200 at $202.97. The immediate resistance level is the Ichimoku Kijun at $220.93, with intraday support seen near $207.35 and short-term resistance at $221.39. Momentum indicators show MACD and ADX confirming a strong selling trend, while RSI at 30.74 and CCI flag oversold conditions. Bull/Bear Power also favors sellers, yet the Stoch RSI is positioned for a potential brief rebound. The Awesome Oscillator remains aligned with ongoing downside momentum.

Further declines likely as volatility band narrows near support

In the near term, NVDA is expected to fluctuate within a band of $207.35 to $221.39, defining the typical volatility range relative to current levels. Downside probability dominates at 78%, suggesting further losses are more likely than a reversal. If the price breaks above $220.93, a recovery phase may become more probable, while a move below $207.35 would signal deeper selling and expose the stock to additional downside risk.

Anton Kharitonov, expert at Traders Union, sees continued risk-off sentiment weighing on Nvidia despite institutional support for its AI expansion. He believes that strong selling pressure and the loss of $365 billion in market value indicate fragile investor confidence. Technicals reinforce the bearish case as NVDA remains below key resistance and oversold conditions persist. "Base case remains downside as long as $220.93 is not reclaimed — I stay defensive until sellers retreat."

Previously it was reported that Amazon is intensifying its competition with Nvidia by making its in-house AI chips more accessible to developers using PyTorch. As Nvidia now faces pronounced selling pressure and heightened volatility, traders should closely monitor the $207.35 downside support for signs of further risk or a potential stabilization if a rebound materializes.

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.