Bakkt shares jump as stock buying pressure builds

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Bakkt rises 5.22% today to $12.50

Highlights

Bakkt trades above short- and medium-term moving averages, signaling a bullish momentum bias in the near term.
Technical oscillators indicate overbought conditions, increasing the risk of a short-term pullback or profit-taking.
Expected trading range for the next week is $11.12 to $13.42, with 25% probability of further upside and consolidation likely.

Anton Kharitonov, expert at Traders Union, sees Bakkt's current rally as overstretched from a technical standpoint. He notes that strong momentum indicators are offset by several overbought oscillators and the stock’s inability to break the 200-day moving average. The absence of material news further undermines the strength of this move and raises concern about its sustainability. Kharitonov emphasizes the downside risk tied to weak buy signals in the weekly indicators. He concludes, "Given the divergence between momentum and overbought conditions, investors should brace for a possible pullback or sideways consolidation in the near term."

Viktoras Karapetjanc, expert at Traders Union, identifies an encouraging technical set-up above critical short-term moving averages. He believes the bullish structure remains intact as price holds well above the 20-day and 50-day averages despite some short-term overbought signals. While weekly indicator strength is limited, Karapetjanc sees further growth potential if resistance at $13.42 breaks. "With strong momentum and clear levels in play, I expect buyers to reassert if price remains above support and a bullish breakout could drive the next leg higher," he says.

Overbought rally risk emerges as bullish momentum diverges

Momentum is currently strong, as both the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) on the daily timeframe indicate a bullish bias with neutral trend strength. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all signal overbought conditions. Bull/Bear Power (BBP) shows buyers dominating (value: 3.12), but also highlights an overbought setup, suggesting the current rally is stretched. The Awesome Oscillator (AO) is also pointing to the upside. Today, the stock is up $0.62 or 5.22%, opening with an upside gap of about $0.54, currently trading midway through its intraday range. Intraday volatility stands at 7.62%. After an impulsive start, price action has stabilized, indicating strong momentum from buyers as intraday tone remains bullish. There is, however, a clear divergence between powerful momentum signals and overbought oscillators, raising the risk of a short-term pullback.

Previously it was reported that Bakkt's short-term momentum was tempered by widespread overbought signals and increased volatility, raising concerns about a possible pullback. The current technical setup reinforces these risks, suggesting traders should monitor for a potential downside break below $11.12 as a signal of shifting momentum.

Source of Data: BKKT 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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