Hut 8 is falling today: what traders are watching (December 26)

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Hut 8 Slides 5.98% Today to $49.64

Highlights

Hut 8 is accelerating its transition into artificial intelligence and high-performance computing via development of its River Bend campus.
Strategic partnerships with Anthropic and Fluidstack position Hut 8 to further expand its HPC infrastructure in the coming years.
These initiatives highlight Hut 8's continued diversification into the AI infrastructure market, signaling a significant shift in its business model.

AI partnership initiatives accelerate as diversification strategy advances

Hut 8 has accelerated its transition into artificial intelligence and high-performance computing through the development of its River Bend campus and new strategic partnerships with firms such as Anthropic and Fluidstack. The collaboration with Anthropic is expected to further expand the company's HPC infrastructure in the coming years. These efforts underline HUT’s ongoing diversification into the AI infrastructure market.

Anton Kharitonov, expert at Traders Union, sees early warning signs in Hut 8 Corp’s technical posture despite its position above major moving averages. He believes the aggressive move into AI partnerships brings uncertainty and does not offset heavy volatility or overbought readings. In his view, weak trend strength and reversal risks outweigh the bullish structure for now. He remains cautious on short-term prospects, noting the increasing downside threat if $49.67 fails as support. "With overbought signals and fading momentum, I expect the risk of sharp pullbacks is higher than the market acknowledges."

Viktoras Karapetjanc, expert at Traders Union, remains confident in Hut 8 due to its strong bullish setup across all timeframes. He highlights the company’s expansion into high-performance computing and partnerships with Anthropic as powerful drivers for further growth. Karapetjanc believes the current volatility offers tactical opportunities, particularly with momentum signals and AI-driven diversification supporting future share gains. "The bullish structure remains intact, and I expect Hut 8’s transition into AI infrastructure to unlock new upside — market participants should watch for breakouts toward $51.71 and beyond."

Overbought signals clash with bullish structure amid conflicting momentum

HUT’s current price of $49.64 is trading well above the MA-20 at $43.70, the MA-50 at $43.88, and the MA-200 at $26.98, which indicates a confirmed bullish structure for the short, medium, and long-term trends. The nearest dynamic support is given by the Ichimoku Kijun at $42.82, while the next resistance is likely in the area of $50 and above, near recent highs and round levels. Momentum readings present a mixed picture. Daily MACD remains bullish, yet ADX is low at 12.25, signaling that trend strength is weak or indecisive. Overbought conditions show up on the daily Stoch RSI and CCI, with the BBP also indicating the market is overbought, suggesting buyers have recently dominated intraday action. However, after a nearly unchanged open, HUT slipped 5.98% to $49.64, now trading near today’s low of $48.48 in a highly volatile session, and faced heavy pressure from the start. The Awesome Oscillator's positive direction supports the longer-term upward trend, but a clear divergence exists as bullish momentum signals conflict with overbought and reversal risk.

Previously it was reported that Hut 8 shares were trading strongly above key moving averages, signaling robust bullish momentum across multiple timeframes, while daily MACD and RSI indicated further upside. Oscillators showed overbought conditions against a volatile backdrop, highlighting dynamic support at the Ichimoku Kijun and potential resistance near the MA-50 or the $50 mark.

Source of Data: HUT Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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