Riot Platforms Poised for Potential Short Squeeze, Analysts Say

Riot Platforms (RIOT) stock is poised for an upside due to a golden cross formation and high short interest, similar to GameStop (GME) and AMC Entertainment (AMC). Approximately 24.3% of RIOT's shares were shorted as of June 30, and its average daily trading volume increased to 45.518 million shares. The company's earnings report on July 31 and unrealized gains from holding 19,000 Bitcoins valued at $570 million could also boost its outlook.

Riot Platforms Inc. (RIOT) stock is positioned for an upward trajectory, driven by a golden cross formation and high short interest, mirroring the surge seen in GameStop (GME) and AMC Entertainment (AMC) stocks. As of June 30, approximately 24.3% of RIOT's publicly available shares were shorted, according to data from the settlement date [1]. This high short interest, combined with a golden cross signal, indicates potential for a significant short squeeze.

The golden cross, formed on July 18, is a technical indicator where the 50-day moving average surpasses the 200-day moving average, often signaling a steady uptrend and further price appreciation [1]. The stock's price of $14.69 per share as of Thursday's close was above its short and long-term simple daily moving averages, with a positive momentum indicator as the MACD line was above the signal line [1]. However, the Relative Strength Index (RSI) at 77.69 was in the overbought territory, suggesting potential reversal or consolidation in the near term [1].

The company's earnings report scheduled for July 31 could further bolster its outlook. RIOT holds approximately 19,000 Bitcoins valued at around $570 million, which, under the new accounting rule from the Financial Accounting Standards Board, could be realized as gains on the company's balance sheet every quarter [1].

The increased average daily trading volume, from 42.076 million to 45.518 million shares, indicates growing investor interest and liquidity in the stock [1]. Additionally, the stock's year-to-date performance has been strong, with a 40.44% increase and a 36.91% gain over the past year [1].

While the market awaits RIOT's earnings report, investors should remain cautious about potential overvaluation, as indicated by the RSI. However, the combination of technical signals and fundamentals suggests that RIOT could experience significant price appreciation in the coming weeks.

References:
[1] https://www.benzinga.com/markets/equities/25/07/46627476/riot-platforms-poised-for-gme-style-squeeze-analysts-point-to-high-short-interest-golden-cross