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- Block stock price fell 15% approx after the release of Hindenburg Research report.
- SQ stock price breakdown $70 and support and slipped below 50 day EMA showcase downtrend.
- Block stock price (NYSE: SQ) defended $60.00 but lacked momentum.
Block stock price fell by 15% approx and lost a big chunk of its market capitalization on a single day after the release of Hindenburg Research report. The short seller, alleged that Block (NYSE: SQ) had inflated user metrics and Frictionless fraud enabled Insiders to cash out over $1 Billion. However, the company denied the fact and said the report is factually inaccurate and misleading. SQ stock price reacted negatively and witnessed massive selling from the higher levels.
Block Stock price closed the previous session at $64.40 with an intraday rise of 6.13% and market capitalization stands at $38.77 Billion. At the mid of January, SQ stock price broke out of its 4 months consolidation range and managed to push the price above the 50 day EMA. It triggered the positive sentiment and turned the short term trend in the upwards direction.
SQ stock price rallied 27% approx in the period of one month and gained the confidence of its long term investors. The rally halted at $90.00 and witnessed minor profit booking from the higher levels.
Will BLOCK stock price bounce back?
Block stock price has tried to sustain above the 200 day EMA but sadly it turned out to be a strong hurdle and prices took the opposite direction. SQ stock began to decline by forming lower low swings and slipped below the 50 day EMA support which invited further decline.
Presently, SQ stock price had defended the $60.00 support level and showed some decent bounce but prices seems to be lacking momentum on the higher levels. The technical analysis suggests Block (NYSE: SQ) stock price is in downtrend and the probability of the sharp rebound remains low. However, if companies succeed to prove that Hindenburg report is inaccurate, then prices might witness some relief rally from the lower levels.
SQ stock : Technical Outlook
SQ stock price has performed well in the past few months and prices have formed a strong base near the $50.00 level. Therefore, $50.00 will act as an important demand zone for the bullish traders. On the other hand, If the situation gets worse and the price drops below $50.00 then it will surely create trouble for the long term investors.
Conclusion
Block stock price fell 15% on a single day after the release of the Hindenburg report which has disturbed the sentiment of its long term investors. The technical analysis suggests SQ stock price is in bear grip and the probability of the sharp rebound remains low. As of now, Block stock price (NYSE: SQ) is expected to consolidate in the range between $70.00 to $50.00. However, if the price drops below $50.00, then bears might try to drag it further down toward new lows.
Technical levels
Resistance levels : $70.00 and $90.00
Support levels : $60.00 and $51.00
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.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
