MSTR Stock Price Near Breakdown Zone: Why Are Targets Still Above $500?

MicroStrategy (MSTR) stock dropped fast last week. The stock was trading around $336.57, falling over 7% on the day and down more than 15% on the week.

Even with that, the MSTR price year-to-date gains were still positive at 12.19%. The question now is this: is the dip simply fear, or is something bigger going on?

Let’s break it down with charts, facts, and Bitcoin in the background.

MicroStrategy Holds 629,376 BTC, but MSTR Stock Dips

Michael Saylor’s company now owns 629,376 BTC, bought at an average of $73,320 per coin, worth over $46.15 billion.

Just this week, they added 430 more BTC at $119,666, showing they’re not backing down despite the price swings.

That’s more than Tesla, Block, and every other public company combined. But even with this massive holding, MSTR fell harder than Bitcoin.

Traders were puzzled. If Bitcoin was flat or slightly up, why was MSTR stock falling harder? A post summed it up like this:

This disconnect raised concerns that the stock wasn’t acting like a Bitcoin proxy anymore.

It made some wonder whether institutional players were quietly reducing risk or rotating out, even if Saylor himself was buying more.

Head and Shoulders Pattern Says $300 Is Possible

One chart from Ali (@ali_charts) showed a clear head and shoulders pattern forming between late June and mid-August.

The neckline lined up around $355, and the projected breakdown target pointed toward $300.

This isn’t just a casual pattern. The volume profile matched classic bearish setups, with declining strength during the right shoulder.

Momentum also flipped negative on multiple short-term charts around the time price broke below $340.

So even though long-term bulls held strong, short-term MSTR stock price pattern traders were flashing warnings.

MSTR Stock Testing Support With Heavy Fear

Scott Melker (@scottmelker) highlighted the $355 support zone as a major line in the sand. That level had acted as support during dips in late June and early July.

But this time, the breakdown came with weaker volume and no immediate bounce.

That’s what worried the bulls the most: the lack of reaction.

In past pullbacks, Strategy, previously MicroStrategy, stock had snapped back within a day or two. This time, it kept falling for several sessions.

That kind of slow bleed can signal a lack of buyers. And while it hadn’t yet confirmed a full breakdown, the pressure was building.

For now, $355 remained a psychological level. If that didn’t hold on any retest, the chart suggested a clear drop to $300–$310 range.

But What if It’s Just a Bigger Base?

Not everyone was calling for collapse. JC Parets (@allstarcharts) shared a multi-year chart showing MSTR forming two cup-and-handle structures; one starting near $200 and another at $320.

If the structure holds, it sets up Fibonacci-based targets at $513, $605, and even $822; all valid projections from the base.

This bigger picture also explained why some traders stayed long: they saw this dip as part of a large sideways consolidation rather than a trend reversal.

The longer MSTR stock price holds above $300, the more likely it is that this is just re-accumulation.

Also, many analysts argued that MSTR’s leverage to Bitcoin still worked; it just added volatility. If Bitcoin makes a push toward $120K, MicroStrategy’s stock could rally twice as fast.

MicroStrategy dropped hard, over 15% in one week, despite owning more Bitcoin than ever before.

Short-term chart patterns like head and shoulders point to a possible move toward $300. But long-term charts still show potential for a breakout above $500.

For now, the MSTR price hovered near $336.57. At the press time, fear was high, and volume stayed low.