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- Drop to $350 Expected – Analyst SIR CHARTIST sees MSTR falling to $350 before a potential rally to $700.
- Bearish Technical Signals – Break below key moving averages and high-volume selling indicate trend weakness.
- $2.1B Stock Sale – MicroStrategy’s plan to raise funds for Bitcoin may pressure MSTR in the near term.
Shares of MicroStrategy (MSTR) are under intense scrutiny as technical indicators and strategic decisions fuel speculation about a major price swing. Market analyst SIR CHARTIST predicts that the stock may plunge to $350 before rebounding by 100% to reach $700, citing a range of bearish signals and structural shifts in market behavior.
Technical Breakdown Signals Bearish Trend
MSTR stock recently broke below its 9-day exponential moving average (EMA) and the 20-day simple moving average (SMA), a move that analysts interpret as a sign of weakening momentum. SIR CHARTIST emphasized that the convergence of these indicators suggests the bullish setup seen in April has eroded. A high-volume breakdown following price consolidation further validates the likelihood of a downtrend continuation.
Let's break down this chart on $MSTR.
— SIR CHARTIST (@ChartBreakouts) May 24, 2025
At the end of this thread I will give my opinion on it as of TODAY!
As traders and chartist, knowing and STUDYING charts is KEY to success.
Lets have a look 👇
THREAD 🧵 pic.twitter.com/gqxG9yRx2d
The appearance of a reversal candle and heavy intraday selling are seen as signs of market exhaustion. “We’re seeing classic symptoms of a fatigued uptrend,” SIR CHARTIST noted, pointing to the stock’s inability to sustain gains despite recent bullish news, including Bitcoin purchases.
$2.1B Stock Sale Adds Pressure
Adding to the volatility, MicroStrategy announced plans to raise $2.1 billion through stock offerings to fund additional Bitcoin acquisitions. While the strategy aligns with the company’s long-standing pro-Bitcoin stance, it introduces dilution risks that have weighed on investor sentiment. A recent $764.9 million Bitcoin purchase briefly lifted the stock above $400, but those gains quickly faded as selling intensified.
Outlook: Watch Volume and Trend Reversals
Despite near-term pressure, analysts believe MSTR could mount a strong recovery—if the right signals emerge. SIR CHARTIST is monitoring for rising green-volume bars as a sign of accumulation. “If buying returns with strength, we could see the beginning of a reversal,” he stated.
Supporting this view, crypto analyst Ali Martinez pointed to a TD Sequential sell signal on the weekly chart, indicating elevated correction risks in the short term. However, both analysts agree that if MSTR finds a bottom around $350 and forms a base, it could pave the way for a breakout to $700.
The TD Sequential flashed a sell signal on Strategy $MSTR weekly chart, anticipating a price correction! pic.twitter.com/aHXJWhOiOX
— Ali (@ali_charts) May 22, 2025
For now, market watchers are focused on trading volume and Bitcoin’s price trajectory, both of which could dictate MSTR’s next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
