Argo Blockchain (LON: ARB) share price is showing a decreased volatility as BTC price remains stuck in a tight trading range. The shares of the London-listed BTC mining firm are mimicking the BTC price action as the pioneering cryptocurrency attempts to break out above the $29,500 level.
On Wednesday, volatility in the crypto and financial markets spiked ahead of the much-awaited FOMC statement. As per the analyst expectations, the rates were hiked another 25 bps by the US Federal Reserve. Argo Blockchain shares opened higher on Wednesday, but the candle closed in red as the sellers jumped in. Nevertheless, the price still closed 1.34% higher than the previous day.
According to the latest Argo Blockchain news, the mining firm has recently offered 51,340,000 new shares to institutional investors at 10p. This, together with the retail offering, yielded 5.8 million pounds in funding. The new shares were admitted on London Stock Exchange on July 24.
This discounted share sale was priced 14% below the volume-weighted average price. Argo Blockchain share price plunged 19% on the afternoon of the day when the news came out. Let’s perform a technical analysis of the stock price to see where it’s heading in the coming weeks.
As clear from the following LON: ARB chart, the shares broke down below the 200-day moving average last week. Since then, the stock has been trading sideways without any significant breakout. The 200-day moving average acts as a line in the sand for many traders.
To maintain a bullish Argo Blockchain share price forecast, the bulls need to reclaim the 200 MA on the daily chart. If they fail to do so within the next few days, the stock may plunge below 8p to retest the falling wedge breakout. A lot also depends on Bitcoin’s ability to break above $30,000.
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This post was last modified on Jul 27, 2023, 08:32 BST 08:32