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- 1 Riot stock faced rejection near $20, indicating a strong resistance zone.
- 2 Bulls were losing their strength and dragging the gains from the top.
Riot Platforms Inc. (NASDAQ: RIOT) stock price was rejected by the resistance mark of $20, heading toward a 20-day EMA near $17. However, buyers attempted to bounce, but sellers regained strength and continued to book profits. Recently, Riot stock showed a breakout of the consolidation phase above $13. Afterwards, the price rallied more than 40% in the past week and reached the supply zone of $20 where sellers started to show their strength and forced the bulls back.
The chart shows bullish cues and is still favoring further buying in the stock, as the technical parameters suggest a bounce near the 20-day EMA. Moreover, Riot stock formed higher highs and higher lows sequences and surpassed the ongoing hurdle decisively from the past months.
At the start of 2023, Riot stock had shown a trend reversal near the bottom of $3.00, where buyers put effort and accumulated. Furthermore, one-way buying was noted, and a massive rise from the lows was witnessed. Moreover, the stock performed well in the past months amid weak performance in Q1 2023.
Riot Blockchain Inc. is focused on building, supporting, and operating blockchain technologies. Distributed blockchain technology is a decentralized and encrypted ledger designed to offer a secure, efficient, verifiable, and permanent way of storing records and other information without intermediaries. It serves as a medium of exchange, store of value, or unit of account.
The company’s segments include Bitcoin Mining, Data Center Hosting and Electrical Products and Engineering. It generates maximum revenue from the Bitcoin Mining segment.
At press time, Riot stock price was traded at $17.43 with an intraday drop of 5.17% showing bearishness in yesterday’s session. Moreover, the trading volume remained at 19.252 Million, and the market cap was $3.052 Billion.
Riot Stock On Daily Charts Shows Buyers Verdict
On the daily charts, Riot stock price showed rejection from the significant Fib cluster range near the 78.6% level and retracing toward 61.8% near the 20-day EMA. However, still trading in the bullish territory and above the key moving averages, which is a sign of bullishness on the charts.
As per the technicals, the Analysts maintained a strong buy rating and remained overweight for the upcoming months. Riot stock has a monthly growth performance of 56.89%, showing a strong growth outlook.
Short Term Chart Shows Bearishness
On the 4-hour charts, Riot stock noted a profit booking and rejection from the supply region of $20. Buyers were trapped, and sellers took advantage by making short positions.
The RSI curve noted a sharp move towards the oversold region, forming a negative divergence on the charts.
The MACD indicator noted a bearish crossover and indicated selling pressure in the past few sessions.
Conclusion
Riot stock price noted selling pressure from the top and was rejected from the supply zone of $20. Moreover, the technical parameters stated a reversal from the top, indicating volatility for the upcoming sessions.
Technical Levels:
Support Levels: $15
Resistance Levels:$20 and $22
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
