Strategy Stock Drops Below 200-Day Moving Average Amid Continued Underperformance
Strategy (MSTR) has dropped to $326, which is 4% below its 200-Day Moving Average (DMA) of $340. This level is significant for traders and investors as it indicates long-term trends. Typically, stocks trading above their 200-DMA are in an uptrend, while those below may indicate weakness.
MSTR has frequently tested this level in the past, rebounding during events like the “Trump tariff tantrum” in April 2025 and again in summer 2024.
The current dip's implications depend on bitcoin’s performance and market sentiment.
Chanos Achieves a Win
Short-seller James Chanos has publicly bet against MSTR by shorting it while taking a long position in bitcoin. This strategy has proven successful, with MSTR down 21% over the past month compared to a modest 3.5% decline in bitcoin.
Market technician J.C. Parets highlighted that the ratio of MSTR to IBIT (BlackRock's spot bitcoin ETF) has reached a five-month low, indicating a rapid decline.