DraftKings Inc (NASDAQ:DKNG) shares are trading higher by more than 5% on Monday as competitive pressure narratives around prediction markets stay in focus.
- DraftKings stock is charging ahead with explosive momentum. What’s behind DKNG gains?
What’s Pressuring DraftKings Stock?
A short-seller outlet, The Bear Cave, recently renewed its bear case on July 16, arguing prediction markets like Kalshi and Polymarket are pulling users away from traditional sportsbooks and could pressure DraftKings over time.
The report pointed to app-data showing daily active users across traditional betting platforms fell 32% to 41% after June 15, while prediction platforms expanded activity.
The same narrative has also pointed to prediction markets taking 27% of U.S. sports-betting volume during the World Cup, up from 9% in January, raising the stakes for DraftKings’ customer acquisition and retention into the fall sports calendar.
DKNG Technical Levels To Watch
From a longer-term trend view, DKNG is still trying to climb out of a deep drawdown (down 45.08% over the past 12 months) and remains well below its 200-day SMA at $27.83, a level that often defines whether institutions treat rallies as “bounces” or “trend changes.” Even after today’s pop, the stock is still below its 20-day SMA ($25.18), 50-day SMA ($25.60), and 100-day SMA ($24.62), keeping overhead supply in play. DraftKings stock will need to reclaim these levels for more sustained momentum.
Momentum is best framed through RSI, which sits at 45.54—neutral, but not showing the kind of stretched reading that typically marks durable bottoms. RSI measures how “overextended” buying or selling has become, and a mid-40s reading usually fits a market that’s still range-bound and trying to stabilize rather than launching a strong uptrend.
The moving-average structure is still bearish, with the 20-day SMA below the 50-day SMA and the 50-day SMA below the 200-day SMA (the death cross that formed in October 2025). That’s consistent with the recent turning points: RSI hit oversold in March, a swing high formed in June, and a swing low followed in July—classic “downtrend with sharp rallies” behavior.
- Key Resistance: $27.00 — a round-number ceiling that also sits near the longer-term 200-day area, where rebounds often stall
- Key Support: $23.50 — a nearby pivot zone close to current price where buyers previously stepped in
DKNG Stock Price Action on Monday
DKNG Stock Price Activity: DraftKings shares were up 5.17% at $24.20 at the time of publication on Monday, according to Benzinga Pro data.
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