Palantir Technologies Faces Sharp Decline Amid Market Volatility
Palantir Technologies Inc. (NYSE: PLTR) experienced a significant 10% drop on Monday, marking only the ninth instance in its history that the stock has suffered such a steep one-day decline. Shares closed at $76.38, falling below the crucial $80.00 support level after weeks of consolidation between $80 and $90.
Investors Buy the Dip Despite Increased Bearish Sentiment
Despite the broader market downturn, Palantir has demonstrated relative resilience, as investors continue to accumulate shares following its sharp pullback from recent highs above $120. While Monday’s trading volume was elevated, it did not reach the extreme levels seen after Palantir’s stronger-than-expected earnings report on February 3rd.
Options market activity indicates a divide among traders. Bearish sentiment has increased, with substantial put option activity at the $70.00 strike for March and April expirations, signaling expectations of further downside in the coming weeks. However, significant call option activity suggests that some investors anticipate a potential rebound in Palantir shares.
Technical Indicators Suggest a Key Battle at $70
Palantir has been struggling to hold above the 50-day moving average, which has recently shifted into a neutral pattern. A further decline toward $70 could push this trendline into bearish territory, increasing the likelihood of additional losses over the next four to six weeks. While the stock’s long-term trajectory remains bullish, short-term weakness is becoming more apparent.
Long-Term Outlook Remains Strong Despite Market Turbulence
Despite Monday’s drop, Palantir remains in a long-term uptrend and is still up 0.9% in 2025, compared to the Nasdaq 100’s 7.35% decline for the year. If the $70 support level fails, investor focus may shift to the 200-day moving average at $50, which would represent a 60% decline from Palantir’s February all-time highs.
With a long-term price target of $150, analysts continue to view Palantir as a strong “buy the dip” candidate, reinforcing confidence in the company’s growth trajectory despite short-term volatility.
