Crypto mining stocks rise as digital asset sector resurges
Over the past seven days, the world’s most popular digital token, Bitcoin (BTC), has jumped as much as 15%. As a result, crypto-related stocks climbed in tandem with a broader stock market rally.
Analysts in the crypto community suggest that the current crypto relief rally is just the beginning of a more extended rally as traders decide on a more aggressive approach to the crypto market. But for the rally to continue, some conditions must be met.
Accordingly, on July 20, GlobalBlock analyst Marcus Sotiriou identified some key levels for Bitcoin that it needs to hold for the rally to have more staying power.
“For the rally to continue, bulls want to see the price hold above $21,500, which is in line with the 20-day moving average.”
Additionally, among crypto miners, over the past five days, Riot Blockchain Inc. (NASDAQ: RIOT ) and Marathon Digital Holdings Inc. (NASDAQ: MARA ) have gained 44.44% and 64.95%, respectively.
RIOT Chart and Analysis
RIOT stock rose 12% in the last trading session to close at $6.23 in after-market trading. This move comes in light of increased trading volumes which were significantly higher than average.
Furthermore, the resistance line for RIOT stock is formed at $7.03, while the support is at $4.29.
Notably, the Wall Street consensus rating for RIOT is a “Strong Buy,” predicting that the average price over the next 12 months could reach $23.83, potentially 239.46% higher than the current trading price of $7.02.
MARA chart and analysis
Meanwhile, MARA has seen significantly higher trading volume over the past couple of days, moving in a range of $5.20 to $14.20.
With price rallying recently, a resistance line at $14.62 and support at $11.37 has formed as the stock tends to trade in a wide range.
Analysts rate the stock as a “moderate buy” and predict that the average price over the next 12 months could reach $20.14, 61.51% higher than the current trading price of $12.47.
As the Crypto Fear and Greed Index moved to “fear” from “extreme fear” for the first time in 73 days, speculation is emerging about a bottom for Bitcoin.
The success of the two above mentioned companies will largely depend on the world’s largest crypto asset holding new levels while going up. Investors looking to gain exposure to these miners should track Bitcoin as their canary in the coal mine.
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Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
