Riot Blockchain Inc. (NASDAQ:RIOT) shares are trading lower Wednesday, although many popular cryptocurrencies are trading higher today. The Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) miner typically trades with the crypto market but is possibly trading lower as tensions rise in Russia and Ukraine.
Riot Blockchain was down 0.18% at $15.92 at time of publication.
Riot Blockchain Daily Chart Analysis
- The stock is near support in what traders call a pennant pattern and is looking to see a bounce higher once again. The pennant pattern happens when the price is condensed between narrowing highs and lows before breaking one of the key levels. The stock is nearing the end of the pattern and could see a breakout if it is able to cross above resistance or fall below support.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates the sentiment has been bearish, and each of these moving averages may hold as an area of resistance in the future.
- The relative strength index (RSI) has been falling lower the past few days and now sits at 40. This shows that the stock is seeing slightly more selling pressure than buying pressure. The movement of the RSI over the next few days could hint at where the price is going. If the RSI can cross above the middle line, the price may start pushing higher once again, but if the RSI dips below the 30 level, traders may see a strong bearish move.
What’s Next For Riot Blockchain?
The stock is seeing a day of bearish movement and is nearing the end of the pattern. The stock could see a breakout in the coming weeks if the price starts to make a strong push in one direction.
Bullish traders are looking to see higher lows form and for the stock to cross above the resistance line and be able to hold above it. Bulls are also looking for the RSI to cross above the middle line and start heading toward the overbought area.
Bearish traders want to see the RSI continue to drop and for the price to crack below the pattern support.