RIVN Stock Price at Make or Break Level

Rivian stock price (NASDAQ: RIVN) is reversing and corrected 16% from the recent swing high. It formed a double top pattern which shows the signs of bearish trend reversal.

RIVN stock price faced rejection from $25.00 and began to decline by forming lower lows. The bear seems more active as compared to bulls so the $20.00 support level is at risk. Rivian stock price drops below the 50-day and 200-day EMA showcasing a downtrend. It triggered the negative sentiment and invited further decline.

However, the price reached near to the crucial support. So it will be interesting to see whether the buyers are able to defend the support or not. In mid-August, Rivian Automotive stock price took support near $20.00 and showed a sharp bounce. Due to this, investors expect that a similar pattern may be repeated.

In the last two months, RIVN stock price traded with a mild bearish bias. It has corrected a lot so major consolidation or short-term bounce is needed. Rivian stock price closed the previous session at $21.13 with an intraday rise of 2.62%. The market capitalization stands at $20.03 Billion.

Will Rivian Stock Price Breakdown $20.00 Support?

Rivian stock price (NASDAQ: RIVN) is trading with bearish cues and no reliable signs of recovery are visible. However, until the price breaks down to $20.00 it may be early to say that more downfall is coming.

Till RIVN stock price sustains above the $20.00 the probability of bounce back will remain high. On the higher side, $25.00 will act as an immediate hurdle for the bulls.

If the price took a U-turn and breakout of $25.00 then a sharp rise toward $28.00 is possible. On the other hand, if Rivian stock price drops below $20, then 10% to 15% more downside will open.

RIVN Stock Fell 14% in the Previous Week

RIVN stock fell 14% last week and formed a giant bearish candle. However, in the current week, sellers did not give the follow-through momentum. It indicates that selling pressure is getting absorbed near $20.00 and buyers are available at lower levels.

The MACD generated a negative crossover but the curve is sloping sideways which denotes that the price may enter in a consolidation. The RSI at 40 denotes weakness but if Rivian stock price recovers, then RSI will also reverse upward.

Conclusion

Rivian stock price (NASDAQ: RIVN) is in a correction phase and buyers are trying to defend the support. The analysis suggests RIVN stock price is near the crucial support, and the possibility of upside reversal remains high.

Technical Levels

Resistance levels: $24.00 and $25.00
Support levels: $19.58 and $18.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.