Riot Blockchain (NASDAQ: RIOT) stock price continues to lose steam after a solid start to the year. The bitcoin mining company saw its stock price soar by almost 105%. However, after a major pullback, it is now trading 30% below its yearly high.
Another reason for the recent downtrend in RIOT Blockchain shares could be the broader sell-off in the stock market. The Nasdaq 100 index fell by around 300 points last week, which dragged down other stocks, including RIOT Blockchain. The S&P500 also suffered a 0.9% decline in the same period.
Riot Platforms Announce Loss In Q2
Riot Blockchain’s Q2 earnings report, released on August 10, showed a net loss. However, it is not as bad as it seems, as the company reported revenue of $76.7 million, an improvement from $73.2 million in Q1. The increase in revenue was mostly driven by increased Bitcoin production, with 1,775 BTC mined in Q2 compared to 1,395 BTC in Q1.
Side by side, Needham keeps a buying recommendation for the Bitcoin miner stock. They also increased their price target from $13 to $19. This suggests that Needham is bullish on RIOT Blockchain stock price.
Riot Platforms Stock Price Slides Towards The Trendline
In my previous analysis for NASDAQ: RIOT, I predicted a retest of the $15 level after the weak earnings report. That’s exactly what happened last week. The price is now slowly making its way back to the trendline as the bulls lose momentum. The demand zone shown in green is another critical area to watch, as it has previously acted as a strong support and resistance level.
RIOT Blockchain stock price will remain bullish as long as it holds the $12.70-$14.50 region. There is a high probability of a bounce in the stock price from this zone. This is due to a confluence of the trendline and the demand zone. In case of a strong rebound in BTC price, $20 could be the next target for RIOT.
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