HUT selloff deepens as short-term trend remains weak

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Hut 8 slides 6.27% to $87.02

Highlights

Hut 8 secured a $1.07 billion credit facility, providing immediate capital to accelerate its artificial intelligence data center expansion.
The company aims for long-term growth in AI infrastructure and increased market reach with this expanded funding capacity.
Shares of Hut 8 fell 6.27% to $87.02 with weak momentum indicators, a projected range of $81.04 to $93, and a high probability of further downside.

Expansion drive accelerates despite sustained selling pressure

Hut 8 secured a $1.07 billion credit facility to support its expansion into artificial intelligence data centers. This provides immediate access to significant capital, enabling the company to accelerate its scale-up plans for AI infrastructure and enhance its market reach. While the move indicates strong long-term growth ambitions and expanded funding capacity, price action has remained under broader selling pressure.

Sellers dominate momentum as HUT tests lower support levels

On the hourly chart, HUT is trading below the MA-20 at $95.19 and the MA-50 at $100.51, while remaining above the MA-200 at $79.56 on the daily timeframe. The Ichimoku Kijun line at $97.51 serves as immediate resistance. MACD and ADX are both in Sell or Strong Sell territory. The RSI reads 38.15 and CCI also indicates a Sell bias, suggesting the asset is nearing oversold conditions; Stochastic RSI is neutral. Bull/Bear Power confirms sellers are dominant in the current session, and the Awesome Oscillator does not show a clear trend alignment.

Sideways price action expected amid heightened downside risk

Over the next 2 to 3 trading days, HUT is likely to fluctuate within a typical volatility band between $81.04 and $93. Downside risk remains elevated, and a significant recovery is unlikely without a break above the $97.51 resistance level. If support at $81.04 is lost, further declines could follow, but in the baseline case, the price is expected to drift sideways within this established range.

Viktoras Karapetjanc, Traders Union expert, sees Hut 8’s major credit facility as a significant vote of confidence in the company’s AI expansion path. He notes that technicals remain weak in the short term, but strong long-term fundamentals and improved funding options keep sentiment constructive. The analyst believes that breaking key resistance at $97.51 may trigger a more decisive shift in market momentum. 'Near-term volatility may persist, but I expect Hut 8 to benefit as the AI growth story reasserts itself in broader sentiment.'

Previously it was reported that Hut 8 secured a major credit facility to expand its AI data center capabilities, while analysts anticipated continued price weakness amid challenging technical conditions. The current update reaffirms this bearish outlook, highlighting increased downside risk and suggesting traders closely monitor the $81.04 support level for potential further declines.

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

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.