The recent price action for Applovin Corporation (APP) has shifted from expansion to correction. The stock is currently experiencing significant selling pressure, moving lower to test a critical structural support. This is no longer a “buy the breakout” chart, but rather a “watch the support” scenario.
The $364.25 Support Test
All eyes are currently on the inclining trendline that has moved up near the current price at $364.25.
● Selling into Support: APP is currently “falling” into this level. In technical analysis, selling into a major trendline often creates a “coiled spring” effect where the stock becomes short-term oversold exactly as it hits a historical buying zone.
● The Bounce Thesis: If the $364.25 level holds, we may see a sharp, tactical bounce as short-sellers cover positions and dip-buyers step in for a relief rally.
Key Resistance Levels (The “Exit” Zones)
If a bounce occurs at the $364.25 mark, traders will be looking for overhead resistance to gauge the strength of the recovery:
- First Resistance: $449.06 — This previously acted as support and may now act as “flipped” resistance.
- Second Resistance: $504.09 — This represents the area where the recent selling began in earnest.
The Bear Case: Breaking the Floor
The danger in “selling into support” is the risk of a high-volume breakdown.
● Invalidation: A decisive close below $364.25 would eliminate the near-term bounce potential from the inclining trendline that has guided APP for months.
● Downside Extension: If this support gives way, the next significant level of support for APP to save price action is at $317.15.
Conclusion
Applovin is at a decisive inflection point. The current sell-off has brought the stock to a high-probability bounce zone at $364.25. Whether this level provides a temporary relief rally or a full trend reversal depends entirely on the buy-side response in the coming sessions.
Source: https://www.fxstreet.com/news/applovin-app-selling-into-support-will-the-trendline-hold-202602122230
