Nvidia CEO Sells $27M Worth of NVDA Shares – Can We Expect NVDA Stock Price Reversal?

Key takeaways

• Nvidia (NVDA) CEO sells a further $27 million worth of stock, taking total liquidation amount to $112 million
• NVDA recently reached its third all-time high in the past 5 years at $502
• CoinCodex algorithm forecasts a 43.92% downturn for NVDA over the coming 3 months

CEO cashes in after recent all-time high

The CEO of Nvidia Corp. (NASDAQ:NVDA), Jensen Huang, has initiated a large-scale sell-off of his NVDA shares. So far, Huang has sold $112 million worth of NVDA, including the most recent sale of $27 million on 14th September 2023.

The sell-off follows a great year for NVDA in which the stock price has grown 205.47% YTD. NVDA is thought to have benefited from the AI investment bubble in 2023, with Forrestor Wave stating in a 2021 report that Nvidia GPUs are “synonymous with the AI industry”.

NVDA price has remained relatively buoyant despite the company leader liquidating, falling just 0.16% in the past 7 days. However, NVDA is 9.59% down from the high it achieved on 24th August. This point marked the third all-time high for NVDA in the past 5 years, taking the stock price to $502.

Huang’s decision to cash in on NVDA shares during this time may be a strong signal that a local top has been found. The $502 ATH was equivalent to the 1.618 Fibonacci extension level and the CoinCodex algorithm has indicated that a trend reversal is likely, in confluence with the recent events.

NVDA 1-year price chart.

Algorithm predicts 43.92% crash for NVDA over next 3 months

The CoinCodex price prediction algorithm expects NVDA to fall back below its previous all-time high in the near future. It has marked a key support level around $260 as the most likely target for an upcoming downturn, which would be equivalent to the 0.618 Fibonacci retracement.

This level also marks a key support level that NVDA found during March 2023. The price of NVDA rested within the $255 to $280 range for more than a month, before swiftly taking off towards its current all-time high.

As a result, $260 could be a key area of interest for buyers. With the CEO of the company selling at the recent high, traders may seek to re-enter their NVDA trade lower down the chart where demand for the stock has proven to be strong in recent months.

3-Month NVDA price prediction, via CoinCodex

Bottom line: CEO selling stock often a strong bear signal

The head of a company selling stock is often a bearish signal for traders, and it should come as no surprise following the impressive run from NVDA to a new all-time high during 2023. The company is integral to the artificial intelligence movement, which means that it is likely to see further growth over the coming years if current global trends persist, but the short-term outlook seems to be inviting some sell pressure.

The CoinCodex algorithm has highlighted a key area of demand at $260 as the most probable price target if the expected downtrend unfolds. For now, NVDA remains close to its range high and has held up well in recent days.

You can learn how to buy NVDA here.