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- 1 Riot Stock price suffered after Silvergate Bank announced shutdown and liquidation.
- 2 Riot Stock and other blockchain related stock like MARA stock fell 10% , Microstrategy stock fell 10%
- 3 Silvergate Bank stock eroded billions and down by 42% on a single day
Riot stock price fell by a sharp 12% in an intraday session on March 11, 2023 after crypto bank Silvergate announced to shut down its operations and liquidate the bank. Silvergate said that all deposits will be fully repaid as per the liquidation plan but the company did not say how it plans to resolve the claim against the business.
However, Silvergate had just $11 billion in assets whereas Signature Bank had $114 Billion but definitely it disturbed the market sentiment of all over the crypto as well as financial markets.
Riot stock is also negatively affected because Riot (NASDAQ: RIOT) is one of largest U.S based publicly traded Bitcoin (BTC) mining companies, supporting the Bitcoin blockchain through rapidly expanding large scale mining.
Riot Stock price might see further downfall ?
Riot stock price gained 64% on YTD basis but sadly it lost the 50% of gains due to the Silvergate uncertainties. In the mid of January, Riot Stock price managed to climb above the 50 day EMA which has triggered positive sentiment and shown initial signs of the short term bullish trend reversal.
Later, Riot Stock investors enjoyed the rally of 65% approx and were able to break out of the $7.00 hurdle level. However, the breakout did not sustain and Riot stock prices faced strong rejection from the higher levels. Therefore, $7.00 will act as an immediate hurdle level for the bulls if any pull back rally triggered from the support levels.
Riot Stock prices seem to be stuck in the narrow range between $5.00 to $7.00 and likely to break the range on either side in coming months. Currently, Riot stock price (NASDAQ: RIOT) has again slipped below the 50 day EMA which shows that bears are strengthening their grip and might drag the prices further down.
However, Riot stock price is near the important support level of $5.00 which might act as a savior for the bulls. The technical indicators of the Riot stock like MACD had generated a negative crossover indicating bearishness to continue in coming days. The RSI at 42 sloping down also denotes weakness.
Conclusion
Riot stock price fell sharply and turned bearish after crypto bank silvergate announced shutdown. However, Riot stock is still inside the narrow range and might see short term bounce from $5.00 level. The technical analysis suggests Riot stock is in bear grip and probability of more downside in Riot prices is high as compared to upside.
Technical levels
Resistance levels : $7.00 and $7.81
Support levels : $5.00 and $3.25
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
