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- Marathon Digital stock price got rejected by the sellers from breaking out of the neckline.
- Marathon Digital share price fell by 8.96% during Monday’s trading session, which opened at $8.04 and closed at $7.11.
- It is trading between the 50-, and 200-Day EMA.
Marathon Digital stock price was at $7.11 with a decrease of 8.96% in Monday’s trading session wherein the trading volume remained below average. This decline in volume shows the lack of confidence among traders toward the MARA stock. The formation of the marubozu candlestick over the daily trading chart indicates that the sellers are in control of the market.
Marathon Digital stock price fell after reaching a new 52-week high in March 2022 as the market was entirely controlled by the short-sellers. However, as Marathon Digital stock price tested its secondary support level of $5.19, it began to move higher once more because of aggressive buyers in the market. The daily time frame chart for Marathon Digital shows that the stock price has since entered a bearish phase.
Due to the intense selling pressure in the market towards the end of 2022, the price of Marathon Digital shares reached its demand zone. As a result, starting in 2023, MARA stock price is tempting to find market stability.
However, after reaching its neckline trendline, MARA stock price began consolidating between its primary support and resistance. This shows that neither the buyers nor sellers are in a stronger position in the market.
However, MARA stock tried to break the neckline which is also acting as a primary resistance of $9.09 but got rejected and has been in a downtrend since then. This indicates that the zone after the neckline is acting as a distribution zone or the supply zone.
If sellers completely took over the market, then Marathon Digital stock price may fall to its primary support due to heavy sellers’ pressure in the market. This can put the Marathon Digital stock price in a critical position in the market.
Marathon Digital Holding Inc (NASDAQ: MARA) Stock Price Technical Analysis:
According to technical indicators, Marathon Digital’s stock price is expected to decline. The Relative Strength Index (RSI) has dropped into the oversold zone and has a negative crossover on the daily chart, suggesting that sellers are accumulating and pushing the price of MARA downwards. Essentially, there is a strong bearish influence in the market.
The current RSI value of $49.27 is below the average value of $53.15, further supporting the idea of a bearish trend. The Moving Average Convergence Divergence (MACD) and signal line are also decreasing, which could result in a negative crossover on the daily chart, reinforcing the RSI’s conclusions. Investors should closely monitor the charts during the trading session.
Summary
During Monday’s trading, the value of Marathon Digital’s stock dropped by 8.96% to reach $7.11, and the amount of trading activity remained below average. Although the stock price reached its highest level in March 2022, it has been declining since then, indicating that short-sellers are in control. However, in 2023, the stock price has been attempting to stabilize after its decline in 2022. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators suggest that the MARA stock is currently in a bearish phase, with a negative crossover on the daily time frame chart indicating a strengthening of the current bearish trend. In 2023, Marathon Digital’s stock price is at a critical stage.
Technical Levels
Resistance Levels: $9.12 and $15.51
Support Levels: $5.19 and $2.94
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 or stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
