DigitalOcean runs enterprise GPU traffic: Will DOCN hold $86.48 support?

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DigitalOcean stock edges higher today

Highlights

Enterprise customers have switched GPU workloads to DigitalOcean, as @higgsfield_ai surpasses 32 million users on its platform.
DigitalOcean reported @higgsfield_ai revenue at a $1 billion annual run rate, up from under $100 million in 18 months.
Shares of DigitalOcean traded higher to $89.79, with the median analyst price target at $175 and 55 of 67 analysts rating it a buy.

Enterprise traffic that previously relied on other GPU providers has shifted to DigitalOcean, the company stated. The same post indicated that @higgsfield_ai now serves more than 32 million users, with pricing starting at $15 a month. DigitalOcean also noted that @higgsfield_ai has reached a $1 billion run rate from less than $100 million in 18 months.

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Downside pressure holds as DigitalOcean trades below key averages

The daily move in shares of DigitalOcean runs against the broader bearish chart structure, with price sitting below its MA-20, MA-50, and MA-200. The nearest support is the weekly low at $86.48, and RSI at 33.7 is nearing oversold territory, which is an early sign the decline is getting stretched. The chart reflects pressure remaining to the downside, though oversold conditions could start to limit further losses.

Odds favor downside next week as sellers control the trading range

To gauge whether the news is being reflected in the price, traders should watch for a close above $107.78 or a drop below $86.48. During the latest session, the trading range expanded from $87.04 to $93.48, stretching well beyond the weekly average. Even so, after a sharp move higher over the past week without a sustained trend, the outlook for the coming trading week shows less than 20% probability to the upside and over 80% probability to the downside, with an expected range between $80.26 and $99.31. A close above $107.78 would show buyers are willing to follow through, while a move below $86.48 would indicate sellers are fading the advance. On the weekly chart the longer-term picture stays negative.

Previously it was reported that DigitalOcean maintained a broadly bearish technical outlook despite recently addressing operational risks and expanding its capabilities. The latest developments in enterprise GPU migration to DigitalOcean add a new dimension to its narrative, while traders should now monitor for price action deviating from the prevailing downside scenario as a signal of changing momentum.

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