Shares of cryptocurrency mining company Riot Blockchain Inc. (NASDAQ:RIOT) are trading higher Tuesday, most likely moving up as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are also both making gains today.
Riot Blockchain was up 8.48% at $30.53 at last check Tuesday morning at publication
Riot Blockchain Daily Chart Analysis
- After bouncing off of the higher low trendline, the stock looks to have reached the 50-day moving average once again inside of what technical traders call an ascending triangle pattern.
- The $40 price level is an area where the stock has struggled to cross above in the past and may continue to act as resistance in the future. The higher low trendline has been an area of support in the past and may continue to hold in the future.
- The stock was rejected by the 50-day moving average (green) Tuesday and trades below the 200-day moving average (blue), indicating the sentiment in the stock is likely bearish.
- Each of these moving averages may hold as a potential area of resistance in the future.
- The Relative Strength Index (RSI) has been climbing the past few days and now sits at 53. This shows the stock has seen an increase of buyers in the past few days and buying pressure is now greater than the selling pressure.
See Related: How Bitcoin Miners Have Reinvigorated This Rural American Town
What’s Next For Riot Blockchain?
Bulls are looking to see the stock continue to trade above the higher low trendline and to continue to form higher lows. Bulls are then looking to see the stock push higher and eventually break above the $40 resistance level.
Bears are looking to see the stock dip below the higher low trendline and be unable to cross back above it. If the higher low trendline can hold as an area of resistance, it may signal that the stock is ready to see a further bearish push in time.
Image by Miloslav Hamřík from Pixabay
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