RIOT) Exhibits Sharp Selloff, Will It Retest $9?

RIOT Platforms (NASDAQ: RIOT) depicts a furious selloff and is revealing roller coaster moves. The stock was in an uptrend for the past weeks and reached $18, but an impulsive selloff destroyed the investor’s portfolio sharply. The stock takes a sharp U-turn and is heading back to the origin of $9, from where the journey starts.

RIOT stock has declined below the key moving averages, leading to massive selling pressure in recent sessions. The stock notes the short buildup activity, and the investors have squared off their gains due to the sudden reversal. Despite the market’s positiveness, the stock could not sustain the gains and faced a rash selloff. 

At yesterday’s close, RIOT Platforms (RIOT) was at $10.29, with an intraday drop of 0.39%, depicting selling pressure. Analysts are neutral and suggest that the stock may retest the demand zone of $9 and will showcase volatility in the upcoming sessions. The stock recently claimed the yearly target price of $19.50 but failed to hold.

RIOT On Daily Charts Displays Sharp Reversal

On the daily charts, RIOT Platforms (RIOT) depicts a sharp volatile move and takes a U-turn from the supply zone of $18. Afterward, the stock faced an intense stimulation and rusted over 40% in the recent sessions. Moreover, the trend swapped from an uptrend to a downtrend, and the stock may stretch the down move to $9 in the following sessions.

The relative strength index (RSI) shows a steep decline and heads to the oversold region, directing selling pressure. The MACD indicator shows a bearish crossover and forms red bars on the histogram suggesting the bears’ dominance.

Per the option chain data, a massive short addition of 908 lakh shares at the strike price of $11 was witnessed. A fresh selling momentum was noted and the stock faced a sudden correction.

RIOT On Weekly Charts Forms Symmetrical Triangle Pattern

On the weekly charts, RIOT stock formed a symmetrical triangle pattern and faced a harsh throwback from the upper trendline of $18. Moreover, the stock is on the verge of a breakdown and is close to the lower trendline support of $10. If the trendline breaches, the stock may overextend the correction and reach $9 soon.

Summary

RIOT (NASDAQ: RIOT) stock price switched the journey and reflected a harsh selloff from the highs of $18. Moreover, the stock is demonstrating a correction, may continue the fall, and will retest $9 soon. Amidst the market positiveness, RIOT stock prevailed in delivering volatile moves and was in a downtrend.

Technical Levels

Support Levels:  $10 and $9.30

Resistance Levels:  $11 and $11.80

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks 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.