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RIOT Stock Balances Between Bullish and Bearish Signals

StockInvest.us, 1 month ago

Riot Blockchain Technical Analysis

Riot Blockchain, Inc. (RIOT) closed the previous trading session at $15.55 with a slight decline of -1.21%. Analyzing the technical indicators, RIOT seems to be balancing between bullish and bearish signals. The stock is currently trading above its 50-day moving average ($13.56) and its 200-day moving average ($12.37), indicating a positive trend in the midterm. The Moving Average Convergence Divergence (MACD) is at 1.11, which points to upward momentum in the recent past. However, the Relative Strength Index (RSI14) of 45 suggests the stock is neither overbought nor oversold, leaning towards a neutral position in the market.

RIOT’s trading volume of 68.42 million on the last close was significantly higher than its average volume of 28.9 million, which could signify heightened investor interest or market activity related to the stock. Keep in mind that RIOT has an average true range (ATR) of 8.73, signifying high volatility.

The stock’s resistance level at $16.45 and support at $15.47 are key points to watch. With the current price close to the support level, a breakdown below this could trigger a bearish movement, whereas a break above the resistance could indicate further bullish potential.

Fundamental Analysis

Fundamentally, RIOT's market capitalization stands at $2.71 billion with roughly 206.52 million shares outstanding. The earnings per share (EPS) is currently at a loss of -$1.80, and the price to earnings (PE) ratio is negative at -7.28, which indicates that the company is not currently profitable. These numbers can be concerning for long-term fundamental investors seeking profitability and stable earnings.

However, Riot's recent operations in expanding its mining capabilities and the anticipation around Bitcoin ETFs, have steered the spotlight toward the company. Riot has increased its Bitcoin mining operations in 2023 and acquired new equipment. The company's move to boost its Bitcoin-mining hash rate in 2024 and the crypto market's cyclical nature suggest potential future growth, especially with the Bitcoin halving event in April, which typically has been a catalyst for increases in Bitcoin's value.

Riot Blockchain Analysts' target prices vary, with the highest target set at $12 and the lowest at $9, placing the median and consensus target at $10.50. However, the current sentiment by analysts towards RIOT is a "Buy," driven by six 'buy' ratings and no 'sell' ratings.

Stock Predictions for the Next Trading Day and Upcoming Week

Coming to the next trading day's prediction, RIOT may experience heightened volatility due to the recent news regarding the launch of Bitcoin ETFs, which has historically increased trading volumes and price movements in crypto-related stocks. If investor sentiment remains positive, this could provide a push for RIOT's stock toward the resistance level, though a breach above it is uncertain. For the upcoming week, much will depend on how the crypto markets react to the new ETFs and on any further news affecting the blockchain and cryptocurrency sector.

Overall Stock Evaluation

Putting together the technical and fundamental aspects, RIOT is a speculative investment. Concerning the next trading day and the upcoming week, the stock could see increased volatility and potentially positive movements in price given the positive news flow and the 'Buy' consensus.

Overall Evaluation: Hold

The recommendation for RIOT would be to 'Hold.' The negative earnings and high volatility suggest that it may be risky for new investment until a more clear profit-generating ability is demonstrated. However, for current investors, the ongoing expansions, upcoming Bitcoin halving, and new ETFs present speculative growth opportunities that may warrant holding the stock for now. Stronger buy or sell decisions would require further insights from the company's earnings report due on 02/29/2024 and subsequent price action in relation to Bitcoin's performance after the halving event.

Check full Riot Blockchain forecast and analysis here.