This Bitcoin And Ethereum Mining Stock Cracks Below Support: What's Next?

Marathon Digital Holdings Inc MARA shares are up Thursday as the cryptocurrency miner trades higher with the crypto market, including Bitcoin BTC/USD and Ethereum ETH/USD.

Mara Digital Holdings was up 1.84% at $34.54 Thursday at publication. 

See Also: Chart Wars: Why Riot, Marathon Stocks Could Bounce If Bitcoin Holds Above This Key Level

Marathon Digital Holdings Daily Chart Analysis

• The stock was trading in what traders call an ascending triangle with resistance near $55 before it fell below the higher low trendline. The stock could take a bearish turn if unable to cross back above the higher low trendline.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been sliding lower the past couple of months and now sits at 40 on the indicator. This shows there are more sellers in the stock than there buyers and selling pressure has been increasing the past few weeks.

What’s Next For Mara Digital Holdings?

The stock broke below the higher low trendline and is showing a sign of weakness. If the price begins to hold this trendline as an area of resistance the stock could be ready for a bearish push in the future. Bears are looking to see this line start to hold as resistance and for the stock to stay below the moving averages. Bulls are looking to see the stock recover the higher low trendline and go on to break above the $55 resistance level. Consolidation above the $55 level could hint that the stock is ready for another bullish move.

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