- Marathon Digital stock price fell 25% in the previous week.
- MARA stock price reacted negatively after Bitcoin price failed to hold 30K.
- Marathon Digital (NASDAQ: MARA) scheduled earnings on May 10, 2023.
Marathon Digital stock price fell 25% on a previous week and corrected 30% approx from recent swing high. Recently, Bitcoin price dropped below the 30K mark which triggered negative sentiment and witnessed profit booking. It indirectly affected the mining company stocks and Marathon Digital is one of them.
MARA stock faced resistance at $12.00 and drops below the 50 and 200 day EMA indicates the initial signs of bearish trend reversal. However, the price is near to the crucial support at $8.00 and responsive buyers might try to bounce back from the lower levels.
Marathon Digital stock price closed the previous session at $8.99 with an intraday rise of 1.22%. The market capitalization at $1.50 Billion. In mid March, MARA stock price took a U-turn by taking support at $5.00 and managed to climb above the 50 day EMA. It turned the short term trend in an upward direction and prices began to rise by forming higher high swings.
Meanwhile, Marathon Digital posted quarterly earnings on March 16, 2023 and the company failed to meet the estimates. Surprisingly, prices reacted positively after earnings and rallied 146% approx in a short period of time. Buyers succeed to break the 200 day EMA to turn the positional trend in favor of bulls.
Marathon price at crucial support
Marathon Digital Stock hit a swing high at $12.84 and ended up forming a shooting star candle. Later, prices retrace downward and erode the gains of past few weeks. Presently, MARA stock is in the demand zone and if buyers succeed to defend the $8.00 then rebound is possible.
Moreover, Bitcoin price is recovering and if it again reaches $30K then it might positively affect the price of MARA stock. On the other hand, if the price drops below the $8.00 support then it will confirm the bearish trend reversal. The technical analysis suggests, MARA stock price is expected to hold the support level and may enter into consolidation for base formation.
MARA stock: Earnings Estimates
MARA stock price formed bearish candle on a weekly time frame and collapsed down with a strong momentum. It returned back to its previous breakout level at $8.00. The next directional move will be visible after the release of next quarter earnings which is scheduled on May 10, 2023. Market analysts estimated the EPS of -$0.085 and revenue estimates are $48.817 Million. If the company succeeds to meet the estimates the probability of rebound will substantially increase. On the other hand, if it disappoints in earnings then the downside support will be at risk.
Conclusion
Marathon Digital stock price fell 25% in the previous week after the Bitcoin price dropped below $30K. MARA stock price is showing initial signs of bearish trend reversal. However, the price is near to the crucial support at $8.00. If buyers succeed to defend the support then we might see a short term rebound.
Technical levels
Resistance levels : $12.84 and $15.58
Support levels : $5.14 and $3.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.