Strategy (MSTR) fell to as low as $326 on Wednesday, trading about 4% below the 200-Day Moving Average (DMA) of $340, a key level markets watch for trading ideas.
This indicator is a commonly used technical measure that smooths out price data over approximately nine months, helping investors identify long-term trends. When a stock trades above its 200-DMA, it’s generally viewed as being in an uptrend, while trading below may indicate potential weakness or a shift in momentum. Due to its role as a significant support or resistance level, the 200-DMA is closely monitored by both traders and long-term investors.
In recent years, the 200-DMA has served as a notable support level for MSTR.
For example, in April 2025, during the so-called “Trump tariff tantrum,” the stock tested this level before rebounding. A similar pattern occurred in the summer of 2024, when MSTR again found support around the 200-DMA before resuming its upward path.
Whether the current dip below this technical threshold is temporary or signals a more sustained downturn will largely depend on both bitcoin’s price action and broader market sentiment.
Chanos notches a win
Famed short-seller James Chanos has been publicly bearish on Strategy for several weeks, announcing that he has made a sizable bet against the Michael Saylor-led company by shorting MSTR against a long in bitcoin.
Recently, this trade has appeared successful, with MSTR down 21% over the past month compared to bitcoin’s modest 3.5% decline.
Market technician J.C. Parets observed that the ratio between MSTR and IBIT (BlackRock’s spot bitcoin ETF) has now decreased to a five-month low, stating, “This one is accelerating quickly.”
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