Nvidia Faces Potential Downturn Amid Technical Analysis Signals

Nvidia, a leading semiconductor company, is showing signs of a significant downturn according to recent technical analysis.

NVDA has been a standout in the stock market, buoyed by its bets on artificial intelligence (AI) and a recent 10-for-1 stock split, making its shares more accessible.

$NVDA – The weekly candle was a small range shooting star candle. Looking at the last 12 months the last time there was a similar candle when price wasn’t at an all time high, happened in October 2023. Given the two 22% drawdown downtrends this one may bottom around 110. pic.twitter.com/0XUOVXm02o

— CyclesFan (@CyclesFan) July 14, 2024

Currently trading at $129, with a remarkable year-to-date gain of 168%, NVDA’s trajectory has caught the attention of analysts, including CyclesFan, who highlighted a potential bearish reversal.

Recent market patterns, including a small-range shooting star candlestick, suggest a looming pullback similar to historical corrections observed in 2023 and early 2024.

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CyclesFan’s analysis points to possible price levels around $110 based on previous downturns, raising implications for NVDA’s role as a barometer in the AI and semiconductor sectors.

A significant correction in NVDA could reverberate across broader tech markets, signaling a possible market reassessment of valuations in these sectors amid ongoing concerns of a market downturn.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.