Riot Blockchain Inc. (NASDAQ: RIOT) shares traded higher Thursday after the cryptocurrency mining stock is likely moving higher as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are both making gains today. Investors Business Daily also added the stock to its watchlist.
Riot Blockchain closed up 8.3% at $39.53.
Riot Blockchain Daily Chart Analysis
The stock has been pushing higher and now has reached resistance in what technical traders call an ascending triangle pattern.
The $40 price level is an area the price has found resistance near and been unable to cross above in the past. The higher low trendline is an area where the stock has been able to find support in the past. These levels may continue to hold until one of them is broken.
The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
Each of these moving averages may hold as a potential area of support in the future.
The Relative Strength Index (RSI) has been climbing the past couple of months and now sits at 67 on the indicator. This shows there is more buying pressure in the stock than selling pressure and the stock is now nearing the overbought range.
What’s Next For Riot Blockchain?
Bullish traders are looking to see the stock trade above the resistance line and begin to hold it as a place of support. This could let the stock continue on its bullish run if the stock is able to consolidate above the $40 level.
Bears are looking to see the stock get rejected at the $40 level and begin to fall back lower. Bears would then like to see the stock fall below the higher low trendline for the stock to possibly see a change in trend and begin downtrending.
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