Riot Platforms shares technical analysis: Seller pressure keeps bears in control below $13.56 support

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Riot Platforms drops 3.82% to $14.98

Highlights

Riot Platforms stock declined after September inflation data exceeded expectations, raising concerns about further Federal Reserve interest rate hikes.
Higher borrowing costs pose risks for technology infrastructure companies like Riot Platforms, pressuring expansion plans and operating margins.
RIOT/USD trades below key moving averages with strong selling momentum, a projected range of $13.56 to $16.76, and a 74% probability of further downside.

Inflation surprise raises rate hike risk for capital-intensive tech

Riot Platforms stock faced pressure following the release of September inflation data that came in above expectations, increasing the likelihood of further interest rate hikes by the Federal Reserve, according to Investing.com. The prospect of higher borrowing costs raised concerns for capital-intensive technology infrastructure companies such as Riot Platforms. Elevated financing expenses can dampen expansion plans and weigh on operating margins within the sector, contributing to the ongoing selling pressure.

Divergent signals as resistance holds and sell momentum intensifies

On the hourly chart, RIOT is trading below the MA-20 at $15.44, the MA-50 at $16.49, and the longer-term MA-200 at $19.49. The Kijun level from the Ichimoku indicator at $15.3 now serves as immediate resistance. MACD currently shows a Strong Sell signal, with ADX confirming a Sell stance. RSI stands at 47.6, reinforcing a Sell bias. However, Stochastic RSI points to an overbought condition and CCI is neutral, creating a divergence among oscillators. Bull/Bear Power remains in Buy territory, suggesting the presence of some intraday buyers, while the Awesome Oscillator is neutral despite prevailing negative momentum.

Downside favored as probability points to continued range-bound trade

In the short term, RIOT is expected to trade within a range between $13.56 and $16.76, reflecting typical volatility for the stock. There is a 26% probability of an upward price move, but the dominant scenario is a continuation to the downside, with a 74% likelihood. Sideways consolidation within this defined range is the baseline expectation. A bullish reversal would require a breakout above immediate resistance at $15.3, while further downside could be triggered by a decisive break below $13.56.

Viktoras Karapetjanc, expert at Traders Union, sees Riot Platforms reacting to macroeconomic shifts, especially as September inflation data triggers expectations for tighter Fed policy and higher borrowing costs. He notes the market's negative sentiment but highlights that growth potential remains if resistance at $15.3 is breached. The technical setup supports a cautious approach with a defined trading range. However, Karapetjanc maintains a constructive outlook overall. "With clear support and resistance in play, I believe disciplined traders can find opportunity in RIOT's volatility despite current headwinds."

Earlier, analysts noted that Riot Platforms was experiencing sustained technical weakness and a dominant bearish outlook. The current article confirms and strengthens this view, as recent inflation data and ongoing negative momentum continue to pose downside risk, making attention to a potential break below $13.56 especially important for traders.

Source of Data: RIOT 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.