Applovin Corporation (APP) has moved out of its expansion phase and into a correction. The price is falling toward a rising trendline near **$364.25**. Instead of looking for breakouts, the key task now is to see whether this support level holds. The stock is testing **$364.25** under selling pressure and is nearing a long-term support area. If it stays above **$364.25**, that would support the case for a short-term rebound off the trendline. If the price bounces from **$364.25**, two resistance levels stand out as possible exit targets: – **$449.06** (a prior support level) – **$504.09** (the area where the recent sell-off began) A close below **$364.25** would break the rising-trendline support and invalidate the near-term support idea. If that happens, the next support level is **$317.15**. Looking back to the 2025 analysis, the stock sold off sharply into this key area. The **$364.25** trendline was the main inflection point and helped define a major low before the later recovery. Fundamentals are currently stronger. Last quarter’s earnings showed **48% year-over-year revenue growth to $1.15 billion**, which points to improving momentum. If you expect a similar rebound after a retest of support, **call options** or **bull call spreads** could be ways to express that view. The AI-driven advertising engine continues to support strong growth in the software platform. Still, the downside risk matters. If the broader market weakens, the stock could break below a major support level—similar to the bearish scenario traders worried about in 2025. More bearish traders could consider **put options** to hedge or to position for a move toward **$317.15**. Because the stock is near another decision point, it also makes sense to watch **implied volatility** closely. If you expect a large move but don’t have a strong directional view, a **long straddle** could fit. This strategy can profit from a sharp move in either direction—up through resistance or down through support. Use the 2025 levels to help guide option strike selection in the coming weeks. A move above **$449.06** would be strongly bullish. A failure at **$364.25** could reopen the path to **$317.15**. Watch **trading volume** for confirmation either way.

here to set up a live account on VT Markets now