Marathon Digital Plummets Amid SEC Subpoenas: A Look At Technicals

Marathon Digital Holdings Inc. MARA shares plunged Monday after the company announced it received a subpoena to produce documents and communications concerning a Hardin, Montana data center facility. The Bitcoin BTC/USD and Ethereum ETH/USD miner said it is cooperating with the SEC.

Marathon Digital was down 27.03% at $55.40 at the close Monday. 

Marathon Digital Daily Chart Analysis

• The stock is seeing a large down day and is nearing previous resistance that may now possibly hold as an area of support.
• The $55 price level previously held as resistance, but as the price is above the area now, it may hold as support. If unable to hold as support, the stock may fall back to the higher low trendline.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock is still bullish.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) dropped lower Monday and now sits at 51 on the indicator. This shows there is now almost an equal amount of buying and selling pressure in the market.

See Related: Why Bitcoin-Related Stock Marathon Digital Is Falling

What’s Next For Marathon Digital?

Bulls are looking to see the stock find support somewhere soon and make a bounce. The old resistance area of $55 may be the area where the stock could find some sort of bounce. Bulls are then looking to see the stock begin to form higher lows.

Bears are looking to see the stock continue to fall lower and break below the $55 level and begin to hold it as resistance once again. Bears would then like to see the stock fall below the higher low trendline, which could start the beginning of a downtrend.