Core Scientific stock forecast: Support test keeps pressure on $16.77

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Core Scientific drops 2.5% to $17.93

Highlights

Core Scientific secured over $24 billion in potential AI hosting revenue, establishing a strong pipeline for future business expansion.
Elevated construction expenses and rising debt are increasing financial risk and could pressure future cash flows for Core Scientific.
Shares of Core Scientific fell 2.5%, trading below key moving averages with strong bearish momentum and a high downside probability within a $16.77 to $19.09 range.

Growth prospects challenged by cost inflation and debt risk

Core Scientific has secured over $24 billion in potential AI hosting revenue, representing a substantial pipeline of committed business and setting the stage for significant top-line growth. However, the company faces elevated construction costs and rising debt levels, which may pressure cash flows and increase financial risk. These risk factors have contributed to a more hesitant market backdrop despite the sizable contract wins.

Conflicting momentum signals as technical resistance intensifies

On the hourly chart, CORZ/USD is positioned below the MA-20 at $18.6 and the MA-50 at $19.59, signaling immediate technical pressure, while the daily timeframe shows the price also staying under the MA-200 at $19.77. The Ichimoku Kijun level at $19.18 acts as immediate resistance. Momentum indicators paint a mixed picture: MACD signals strong sell, ADX is neutral, RSI prints a sell at 47.24, while Stochastic RSI is in overbought territory and CCI issues a buy signal. Bull/Bear Power registers overbought conditions, hinting at weakening conviction among buyers. These conflicting signals underscore high volatility and wide intraday swings, reinforcing a sense of uncertainty around the immediate trend.

Downside risk dominates as volatility persists within trading range

Over the next few days, the price is expected to remain volatile within the $16.77 to $19.09 band. The likelihood of a move higher is very low, and ongoing downside remains the dominant risk scenario. Barring a catalyst, CORZ is likely to consolidate in this range; a sustained move above $19.18 could trigger upside momentum, while a breakdown below $16.77 would reinforce bearish control.

Anton Kharitonov, expert at Traders Union, believes Core Scientific’s large AI hosting contracts demonstrate strong long-term revenue prospects, but the weight of construction costs and increased debt cannot be overlooked. He sees technicals confirming immediate downside bias, with mixed momentum suggesting persistent uncertainty and no reliable trend change. Skepticism in market sentiment remains elevated under current conditions. "Until we see a decisive break above $19.18 or a genuine easing of financial risks, I would stay defensive on CORZ."

Previously it was reported that Core Scientific faced ongoing downside risk as technical indicators pointed to sustained selling pressure and limited upward momentum. The current analysis broadens this view by highlighting new financial risks from construction costs and debt, suggesting traders monitor the $19.18 resistance for any potential shift in the prevailing bearish scenario.

Source of Data: CORZ Price Analysis by TU

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.