Marathon Digital Holdings Stock Price and Forecast: Why is MARA up 10%?

• MARA surged over 10% on Friday as risk is back on.
• Jackson Hole symposium goes well, Powell reassures equity investors.
• Bitcoin is steady as stocks surge to record highs.

Marathon decided to sprint for the finish line on Friday and power its way across the closing line for a 10%-plus gain to close at $40.20. Risk aversion was the main theme earlier in the week as investors nervously awaited the outcome of the central bank summer party at Jackson Hole. Thankfully, Fed Chair Powell performed his party trick to much aplomb. Inflation is nothing to worry about, and we will start tapering, but do not worry! This is despite PCE inflation data hitting a multi-decade high on Friday. For now, though everyone is content, and the Dow and S&P 500 saw fit to set yet more all-time highs on Friday. This brought most stocks higher, and MARA was a star performer, surging above $40. Crypto stocks have been strong of late as Bitcoin holds near $50,000. Despite the cryptocurrency leader failing to break above, it is still holding just below, leading many to believe Bitcoin is consolidating and will soon break $50,000. 

MARA statistics

Market Cap	$3.9 billion
Price/Earnings
Price/Sales	716
Price/Book	10
Enterprise Value	$2.75 billion
Gross Margin	-0.77
Net Margin	-0.78
52 week high	$57.75
52 week low	$1.48
Average Wall Street Rating and Price Target	Buy $50.67

 

As we can see below Friday's move was pretty swift from the open with MARA consolidating those gains as the session wore on and closing near the high of the day, always a positive sign. 

MARA stock forecast

As ever with the crypto stocks, it is Bitcoin that sets the tone for the whole sector. Just like the oil stocks, we must analyze the underlying in order to see what impact this will have on the stock.

Bitcoin (BTC) price forecast

Bitcoin, as we mentioned in our piece last week, is holding just below $50,000 with $44,000 the key support. Breaking $44,000 ends the uptrend series of higher lows, so it is a big support. However, breaking $50,000 should see Bitcoin head for $57,000 pretty quickly due to a lack of volume. Our own Bitcoin price predictor from our experts shows 43% bullish, 43% bearish and the rest undecided. You cannot get more balanced than that. 

MARA stock certainly looks bullish, having registered a strong 10% gain on Friday and breaking the key psychological $40 barrier. MARA is just getting to the level of volume where things can get interesting. Above $39.68 volume thins out, so any move has the potential to accelerate. We would really like to hold onto most of Friday's gains then and help MARA to push on to resistance at $56.64. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both trending higher, thereby confirming the price. While a pullback is likely given such a strong move on Friday, we would not like to see MARA break the 9-day Simple Moving Average (SMA) support at $36.34. Breaking $30 ends the bullish trend and makes a lower low. If MARA breaks $30 then the best area to try and get long again in our opinion is from $22.66 to $23 – the point of control since January.

 

 

 

 

 

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