The Argo Blockchain share price has been in a strong downward trend in 2022 as investors worry about the plummeting cryptocurrency prices. The ARB stock price is trading at 34.86p, which is the lowest it has been since December 2020. It has crashed by more than 90% from its all-time high, bringing its market cap to over 166 million pounds.
Argo Blockchain is a leading company in the cryptocurrency industry. It is Bitcoin mining company that operates in the United States and Canada. It owns over 44,000 mining machines and holds more than 2,379 Bitcoins. At the current price, these coins are worth over $49 million. In addition, Argo Blockchain claims to be 100% carbon neutral.
Argo Blockchain’s mining capacity has been increasing in the past few years. Its capacity has risen from 0.8 EH/s in December 2018 to 5.5 EH/s IN May this year. However, while the company has made a lot of progress, its financial performance is expected to continue deteriorating as the price of Bitcoin remains under pressure.
Bitcoin has tumbled from almost $70,000 in November last year to about $20,000 today. Like other mining companies, Argo Blockchain share price has a close correlation with Bitcoin. This explains why other mining firms like Hut 8 Mining and Marathon Digital have all crashed. Therefore, its recovery will depend on the performance of Bitcoin prices.
The daily chart shows that the ARB share price has been in a strong bearish trend in the past few months. This decline saw the stock crash below the important support level at 80p, which was the lowest level in July last year. In addition, the stock has moved below the 25-day and 50-day moving averages, while the RSI has moved slightly above the oversold level.
Therefore, the Argo Blockchain share price will likely continue falling as bears target the key support at 10p. However, a move above the resistance at 40p will invalidate the bearish view.
This post was last modified on Jun 24, 2022, 10:23 BST 10:23