MSTR Slides to Five-Month Low, Dips Below 200-Day Moving Average Amid Mounting Technical Pressure

MicroStrategy (MSTR) shares dropped sharply on Wednesday, touching a five-month low of $326 and breaking below the closely watched 200-day moving average (DMA) of $340—a key technical threshold that has historically served as a support level for the stock.

The 200-DMA, which smooths out price action over approximately nine months, is a widely followed metric used by both technical traders and long-term investors to gauge broader trend direction. Trading above it is typically viewed as bullish, while a drop below may indicate weakening momentum or a potential trend reversal.

MSTR has previously used the 200-DMA as a springboard. In April 2025, during the market volatility surrounding the “Trump tariff tantrum,” the stock briefly tested this level before bouncing higher. A similar rebound took place in mid-2024, reinforcing the indicator’s importance as a support zone.

Whether MSTR’s current breach of this trendline marks a temporary dip or a more prolonged downturn will likely hinge on bitcoin’s next move and the broader appetite for risk assets.

Short Seller Chanos Sees Trade Paying Off

Veteran short-seller Jim Chanos appears to be capitalizing on the decline. Chanos recently disclosed a sizable short position in MSTR, paired with a long position in bitcoin—an expression of his belief that MicroStrategy would underperform relative to the cryptocurrency it aggressively holds on its balance sheet.

So far, the bet is working. Over the past month, MSTR has shed 21%, far outpacing bitcoin’s comparatively mild 3.5% decline.

Market technician J.C. Parets pointed out that the ratio between MSTR and BlackRock’s spot bitcoin ETF (IBIT) has now fallen to its lowest level in five months. “This one is accelerating quickly,” Parets commented, signaling growing technical fragility in the stock relative to the crypto market.