DraftKings Inc. (NASDAQ:DKNG) stock experienced downward pressure on Wednesday as competitive momentum from prediction platforms weighed on traditional sportsbooks.On July 16, short-seller outlet The Bear Cave published a report arguing that prediction markets draw users away from traditional sportsbooks. The report noted DraftKings stock dropped roughly 40% since its initial coverage.The Bear Cave stated, "The Bear Cave believes that Kalshi’s growth will ultimately come at the expense of DraftKings, first slowly, then rapidly." The Bear Cave labeled DraftKings’ recent performance "comparatively sluggish" and noted consumers are "voting with their fingertips" due to better product distribution on prediction platforms.App Data Shows ShiftA July 6 Apptopia report cited by The Bear Cave showed daily active users across traditional betting platforms dropped 32% to 41% after June 15, while Kalshi and Polymarket expanded user activity. Furthermore, Dune data showed Kalshi surpassed $100 billion in cumulative volume.Technical AnalysisFrom a trend perspective, DKNG is still in a downtrend on the longer timeframes, down 48.51% over the past 12 months and trading 18.1% below its 200-day SMA at $28.00. It’s also 10.7% below its 50-day SMA at $25.68 and 9.6% below its 20-day SMA at $25.35.The moving-average structure is also bearish: the 20-day SMA is below the 50-day SMA, and the 50-day SMA is below the 200-day SMA (a death cross that formed in October 2025).