Marathon Digital Holdings Inc. (NASDAQ:MARA) gained 0.37% on Friday. As the stock surged on Friday, traded volumes also increased. The capital gains came after five consecutive days of losses. Though small, the gains signal positive changes in market sentiment, favouring the blockchain stock.
Past performance is an important indicator of how the stock may perform in the short-term and medium-term. Before gaining 0.37% on Friday, Mara Digital Holdings shed 24.98% of its value in only 5 days. Year-to-date, the stock has lost 39.45%. However, Marathon Digital makes an interesting stock pick because it is still 140.03% higher than 1-year ago. Investors are attracted to the probability of doubling value in a 1 year by investing in the volatile stock.
The company is strategically positioned to benefit from growing interest in digital assets. As a cryptocurrency mining business, the valuation of Marathon Digital is closely linked to crypto movements. The stock is an interesting pick to watch as investment options around digital assets increase. Recent developments around crypto ETFs have created more interest in companies like Marathon Digital.
One important question is what investment style best fits the company. Mara Digital Holdings is an A-rated momentum stock. That makes it attractive to momentum investors. Performance of the crypto markets plays an impactful role in fundamental and technical growth of the company. As volatility increases in the cryptocurrency markets, momentum is projected to build up for the company. The stock holds great potential for momentum investors.
Mara Digital Holdings might settle at $16
Source: TradingView
From a technical point of view, Mara Digital Holdings could establish support at $16. Analysis shows that the RSI of 38.78 is nearing the oversold region. This implies less likelihood of further declines. The 14-day SMA for the RSI at 53.12 indicates a neutral view of price performance. Indicatively, the valuation of Mara Digital Holdings may settle at the current levels. As the valuation settles at $16, this might be a good entry point for momentum traders.
Summary
Mara Digital Holdings is an attractive momentum stock. It provides exposure to the cryptocurrency prices and markets. As volatility in the digital assets space increases, Marathon Digital may gain fundamentally and technically. The valuation of $16 makes a good buy entry point as the price settles.
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