RDDT's $100 Floor: When a Lawsuit Cloud Meets the Chart
By Charlie Zhang | Chart Watch
$100 is the line in the sand for RDDT. That’s not just a round number—it’s where the stock has found footing during its violent slide from over $280. Right now, the chart is a battleground: each bounce around $100 looks like a ball hitting a floor, but the floor is cracked. The real story isn’t just the price pattern; it’s the legal cloud hanging overhead. The market hates uncertainty, and the Anthropic copyright lawsuit is the definition of uncertainty. Until that clears, buyers will tiptoe, and sellers will use every rally as an exit.
What the chart shows is a series of lower highs and lower lows—the classic downtrend. But the volume tells a different tale: each dip toward $100 has come with heavier buying interest, suggesting some big players are willing to catch a falling knife. The key question is whether they’re betting on a legal settlement or just bargain hunting. A break below $100 would open the door to the mid-$80s, where the next historical support lives. If $100 holds and we get news of a settlement, the pattern could snap back like a stretched rubber band, aiming for the $130 gap and eventually the $200 level where the last consolidation camped out.
Retail chatter is split right down the middle. On WSB, you have die-hards loading shares and leaps, convinced the legal overhang will resolve like Google’s DOJ drama did. On r/StockMarket and r/investing, many are pointing to existing AI data deals and warning that the market’s pricing in too much optimism. The unifying theme: everyone agrees the lawsuit is the catalyst—bulls see a settlement as a rocket, bears see it as a reason to stay away. For now, the crowd is watching the $100 level as the trigger for either side’s thesis.
The Setup
Above $100, the path opens to $130, then $180–$200 if legal news clears. Below $100, watch for a retest of the mid-$80s, where the chart’s last floor might give way. The pattern is a falling wedge with heavy volume at the lows—a setup that can signal a reversal if the catalyst arrives. For bulls, a settlement announcement is the green light; for bears, a break below $100 on no news confirms the downtrend.
Methodology Note: Analysis based on ~70 posts and ~1,300 comments from Reddit's investing communities over the past 24 hours. I’m seeing this wedge pattern because the price action and legal narrative are aligning, but I’m wary of wanting to see a bullish resolution just because the downside feels overextended. Confidence: 75%.