Marathon Digital Looks Like It's Ready For Consolidation

Marathon Digital Holdings Inc. (NASDAQ: MARA) shares were trading lower Tuesday after the cryptocurrency market dropped lower. Ethereum (CRYPTO: ETH) and Bitcoin (CRYPTO: BTC) led the market, both dropping lower by a significant percentage.

Marathon Digital was down 9.05% at $39.48 at last check Tuesday afternoon.

Marathon Digital Daily Chart Analysis

• Shares look to have broken out of what technical traders call a pennant pattern and are cooling off, possibly beginning to consolidate.
• The price was condensed in the pattern until it broke out and pushed higher, now possibly entering into a phase of consolidation.
• 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 possible area of support in the future.
• The Relative Strength Index (RSI) has been climbing higher throughout the past few weeks and now sits at the 60, possibly indicating that the stock is seeing more buying pressure than selling pressure.

What’s Next For Marathon Digital?

Bullish traders are looking for a slight period of consolidation while being able to hold the gains it has made. Bulls would then like to see the stock push higher with another leg up in the future.

Bears would like to see the stock drop lower and fall below the higher low trendline. If the stock could hold below the higher low trendline, there is a possibility that the stock changes trends and sees a further bearish push in the future.

Image by Gerd Altmann from Pixabay