Riot Blockchain (NASDAQ: RIOT) stock price continues to suffer for the third consecutive week. The Bitcoin miner company saw a massive 105% gain due to Bitcoin hitting the $30,000 mark. However, it seems the bulls have lost momentum, as the stock price is trading 45.6% below the yearly peak.
The Bitcoin price seems to have given up to the bearish pressure, as it plunged 11% last week. The biggest cryptocurrency is trading at $26,000 after hovering between $29,000-$30,000 for 57 days. The Bitcoin sell-off also impacted the stock price for Bitcoin miners like Riot Platforms, tanking them to their fresh monthly lows.
Investment Banks Hold “Buy” Rating For Riot
On 14th August, B. Riley Financial displayed some faith in Riot’s stock price as they increased the price target from $14 to $18. The investment bank listed the huge availability of capital for the Riot as the reason behind the upgrade. HC Wainwright also followed by maintaining the buy rating and raising the price target from $13.5 to $18.
In other news, the RIOT also announced the offering of $500 million in shares as an at-the-market offering. The total share count is expected to jump by 20% if this offering goes ahead. This will also mean more equity available for Riot to expand its Bitcoin mining operations. At the time of writing, RIOT blockchain stock is trading at $11.07 after dropping 5.47% on Monday.
Riot Stock Price Breaks Below Demand Zone
The price chart for NASDAQ: RIOT shows the price not only broke below the critical demand zone but also the trend line. The stock is currently 12.5% below the demand zone low at $11. The price seems to be making its way to retest the $10.57 support level.
If the bears are still holding strong during the retest of the $10.57 support, the next bearish target could be the daily 200 MA at $9.3. However, bulls need to reclaim the demand zone to avoid more downside.
In the meantime, I’ll keep sharing updated RIOT Platforms analysis and my personal trades on my Twitter, where you are welcome to follow me.
