Nvidia stock (NASDAQ: NVDA) opened Monday’s trading session at $217 after plunging nearly 4.6% on Friday. It fell from a high of $228 and slipped south the entire day. On the heels of the recent downturn, a trading expert has cautioned that NVDA is flashing a bearish signal and supported the thesis with a chart-based analysis.
The expert published by TradingShot on TradingView argued that Nvidia stock is mirroring technical conditions to previous major price corrections, including the 2018 and 2022 crashes. He even went ahead and cautioned investors that NVDA stands a chance of crashing 40% from its current price. It would be a market-shaking crash if such a scenario plays out and realigns the tech sector.
The analyst shared a chart explaining that Nvidia stock has been trading within an 11-year ascending channel dating back to July 2015. He stressed that this phase has historically gone through cyclic bullish and bearish phases and produced major tops and bottoms. The expert argued that NVDA’s current cycle has peaked in May 2026, when it reached a yearly high of $236.
TradingShot referred to the sine-wave cycle of 2018 and 2022, identifying the major turning points. Based on the pattern, he predicted that Nvidia stock could plummet to the $130 zone next. The timeline he gave for such a doomsday scenario to play out is by the end of 2026. He noted that the initial downside target is $170, and according to historical levels, could plunge to $130. His thesis aligns with the weekly 100-week moving average and several key support levels from 2025 and 2026.
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Can Nvidia Stock Really Crash to $130? Here’s Our Take
Historical contexts can never replay the same way that they occurred years ago. Each market dynamic and macroeconomic factor is different. There was no AI boom when the previous crash occurred, and that tech is now a global phenomenon. Nvidia stands at the top of the AI growth, with revenues ranging from $1 billion each day. Therefore, the cushion of support already exists for Nvidia stock, and an unprecedented crash can take place if an untoward incident takes place.