Strategy stock forecast: Price poised for consolidation with $115.04 support in focus

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Strategy drops 3.41% to $124.75 today

Highlights

Strategy Inc. completed a $283.8 million equity raise, issuing 2,051,348 new common shares and raising its share float.
Proceeds funded the acquisition of 1,036 bitcoins and repurchasing $188.3 million of variable-rate Series A preferred stock, shifting capital allocation.
Shares trade below key moving averages with weak momentum; expected price range over several days is $115.04 to $134.46.

Balance sheet revamped as equity sale funds bitcoin and preferred buyback

Strategy Inc. completed a sale of 2,051,348 newly issued common shares, raising $283.8 million and increasing outstanding float, according to Investing.com. A portion of the proceeds, $81.9 million, was used to purchase 1,036 bitcoins, while $188.3 million funded the repurchase of variable-rate Series A Perpetual Stretch Preferred Stock, indicating a shift in capital allocation. Post-transaction, the company's USD Reserve stood at $4.77 billion after a $21.1 million preferred dividend payment, with USD Cash at $146.2 million, reflecting ongoing efforts to adjust its balance sheet and liquidity profile.

Seller momentum dominates as technical levels and indicators weaken

MSTR/USD has broken below the MA-20 at $132.21, the MA-50 at $134.42, and the MA-200 at $133.73, with immediate resistance now set at the Ichimoku Kijun level of $134.32. Momentum is weak, as both MACD and ADX remain negative, while Bull/Bear Power is deeply negative at -3.75, highlighting strong seller dominance. The Awesome Oscillator is neutral, and both RSI and CCI are in neutral territory. Stoch RSI, however, is deeply oversold, suggesting only a limited risk of a short-term technical rebound.

Sideways trend likely as volatility and resistance define short-term outlook

Over the coming days, MSTR is expected to trade within a volatile range between support at $115.04 and resistance at $134.46. The most probable scenario is a sideways consolidation inside this corridor given prevailing pressure, with a low probability of a rebound due to persisting bearish momentum. A break above $134.32 would be required to restore a bullish outlook, while a move below $115.04 could trigger further declines. This range reflects current volatility and the influence of technical barriers.

Anton Kharitonov, expert at Traders Union, sees MSTR under sustained selling pressure after the recent share issuance and balance sheet adjustments. The technical setup is weak, with price stuck below all major moving averages. Rangebound trade between $115.04 and $134.46 is likely, with momentum and sentiment both negative. "Until MSTR decisively reclaims $134.32, I see no reason to position for upside — risks remain skewed to the downside."

Previously it was reported that analysts highlighted ongoing technical weakness in Strategy shares despite positive signals from the company’s balance sheet actions and bitcoin acquisitions. The current article strengthens this view, as the confirmed downtrend and lack of momentum reinforce the importance of monitoring the $115.04 support level as a key risk in the days ahead.

Source of Data: MSTR 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.