Crypto mining stocks climb as digital asset sector undergoes a resurgence
In the last seven days, the world’s most popular digital token, Bitcoin (BTC), has jumped by as much as 15%. As a result, crypto-related stocks climbed in tandem alongside a broader rally in the equity markets.
Analysts within the crypto community are suggesting that the current crypto relief rally is just the beginning of a more extended upswing as traders decide on a more aggressive approach to the crypto market. However, for the rally to continue some conditions would have to be fulfilled.
Accordingly, on July 20, GlobalBlock analyst Marcus Sotiriou pinpointed some key levels for Bitcoin that it must hold for the rally to have more staying power.
“For the rally to continue, bulls want to see the price hold above $21,500, which is in confluence with the 20-day moving average.”
In addition, among crypto miners, Riot Blockchain Inc. (NASDAQ: RIOT) and Marathon Digital Holdings Inc. (NASDAQ: MARA) in the last five days have gained 44.44% and 64.95%, respectively.
RIOT chart and analysis
RIOT shares gained 12% in the last trading session to close at $6.23 in aftermarket trading. This move comes in light of increased trading volumes which were notably higher than the average.
Furthermore, the resistance line for the RIOT stock is formed at $7.03, while the support is at $4.29.
Notably, the consensus rating on Wall Street for the RIOT is a ‘strong buy,’ predicting that the average price in the next 12 months could reach $23.83, potentially 239.46% higher than the current trading price of $7.02.
MARA chart and analysis
Meanwhile, MARA has had considerably higher trading volume in the last couple of days, moving in a range of $5.20 to $14.20.
With prices rising lately, a resistance line at $14.62 and support at $11.37 have formed as the stock tends to trade in a wide range.
Analysts rate the shares a ‘moderate buy,’ predicting that the average price in the next 12 months could reach $20.14, 61.51% higher than the current trading price of $12.47.
As the crypto fear and greed index moved to “fear” from “extreme fear” for the first time in 73 days, speculations of a bottom for Bitcoin are surfacing.
The success of the above two companies will largely depend on the world’s biggest crypto asset holding new levels while grinding upwards. Investors looking to get exposure to these miners should track Bitcoin as their canary in the coal mine.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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