Marathon Digital Holdings (MARA) Stock Forecast: Bitcoin bounce helps MARA aim for resistance test
- MARA shares recover a nice 10% on Monday as Bitcoin steadies.
- MARA also boosted by miners discussing energy usage.
- Elon Musk reportedly in talks with miners on energy usage.
Marathon Digital Holdings is a cryptocurrency mining company, formerly called Marathon Patent Group. MARA has two main areas of operation. Montana in the US, where it operates a data centre, and also North Dakota where MARA has a site with Bitcoin mining machines in operation. Like many other crypto stocks, MARA shares have fallen sharply in April and May. The shares peaked at $57.75 on April 6 and have dropped to under $20 in early May.
Obviously, the wobbles in Bitcoin have hit the sector hard and MARA is no exception.
MARA stock forecast
Just like its fellow miner RIOT, Marathon shares have stalled just at the 200-day moving average at $17.86. Not quite getting there, but close enough. MARA shares also traded down to the previous consolidation zone perfectly and found support there. As mentioned in the RIOT article, a confluence of factors (consolidation and 200-day) makes for strong technical support. This larger support zone is really two consolidation zones. The initial move up in early Jan consolidated below $19.88 and once it broke through MARA consolidated again from $19.88-$23.
The second zone is where MARA shares have found support recently and stopped the price descent. Just like it has been witnessed in RIOT, MARA shares showed up as being overbought on the Relative Strength Index (RSI) and Commodity Channel Index (CCI) on May 13. Adding to the strength of the support zone. The key resistance to break is the 9-day moving average at $23.35 and, above there, a gap from $26.41-$27.62 needs to be filled, just before $28.37, the high from Jan 8. Above that, $39.68 is the high from early May. $19.88 is really the key to hold, a break is bearish and ends the consolidation phase with the last chance saloon being the 200-day moving average. The next area of support would then be $10-$12, the consolidation from December.
| Support | 19.88 key | 17.86 200-day | 12.50 | 10 | |
| Resistance | 23.35 9-day | 26.41 gap | 27.62 gap | 28.37 | 39.68 |
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
