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MSTR Stock Could Crash To $350 Before Rally To $700, Says Expert

Expert Chartist has explained why the MSTR stock price could crash to $350 before it witnesses another 100% rally to $700.
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MSTR Stock Could Crash To $350 Before Rally To $700, Says Expert

Highlights

  • Expert SIR CHARTIST expects the MSTR stock price to crash to $350, with selling volume reducing thereafter.
  • Following this crash, he predicts that the stock could witness another breakout which would lead to an 100% price rally.
  • He warned that the MSTR trade is not the same as in April and that market participants cannot keep expecting only green candles.

Market expert SIR CHARTIST has dropped an in-depth analysis of the MSTR stock price action. In his analysis, he explained why the stock is primed for a crash to as low as $350. However, he remarked that the stock will eventually witness another 100% rally, which could send its price to $700.

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MSTR Stock Could Drop To $350 Before Surge To $700

In an X post, SIR CHARTIST indicated that the stock could drop to $350 before the surge to $700. He stated that he is looking to see more panic to the $350 level, followed by a decrease in selling volume and an increase in volume associated with green candles.

He noted that right now, the MSTR trade is not the same as it has been since April. SIR CHARTIST explained that the probability of it being a successful day trade to the long has diminished, suggesting that market participants can no longer just expect green candles to the upside.

The expert revealed that the Strategy stock price is now below the 9 exponential moving average (EMA) and 20 Simple Moving Average (SMA). He further remarked that the 9EMA is bearishly converging with the 20SMA on top of that.

Meanwhile, to make things worse, SIR CHARTIST revealed that the MSTR stock price has consolidated, but a breakdown on high volume followed this consolidation. He also alluded to Strategy’s plans to raise $2.1 billion to buy more Bitcoin.

As CoinGape reported, Michael Saylor’s company will raise the sum through stock sales for more Bitcoin acquisition. The expert opined that, depending on market conditions, the key is to look at the volume heading into next week. He claimed it is the only thing to do because the volume does not lie.

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The Rally To $700

SIR CHARTIST suggested that the MSTR stock could witness a 100% rally to $700 following the projected crash to $350. He highlighted the breakout of an earlier channel, which led to over a 100% return with minimal downside, and urged market participants to study the move “because it will happen again.”

He noted that MSTR has had a strong multi-month base and that it is important to pay attention when there is a sideways channel on a highly discussed retail stock.

Commenting on the current price action, the expert highlighted the reversal candle after the big rally, which shifted the stock into a downtrend. He remarked that high volume selling and a huge intraday reversal candle showed exhaustion and a huge trend shift.

With the blowoff top appearing, he advised investors to protect themselves in the meantime rather than marrying the trend because they do not last forever.

Crypto analyst Ali Martinez has also warned about a potential correction for the MSTR stock price before another rally to the upside. In an X post, he revealed that the TD Sequential flashed a sell signal on the stock’s weekly chart, anticipating a price correction.

Market participants will also watch to see if Strategy purchases more Bitcoin in the coming week, a move that has usually boosted the stock’s price. The stock rallied above $400 earlier this week after the company announced it purchased 7,390 BTC for $764.9 million.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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