Riot Platforms Inc. ( RIOT ) just flashed a major warning signal, officially forming a Death Cross as its 50-day simple moving average sank below the 200-day moving average.

While shares jumped 3.93% by early afternoon on Monday, the broader trend remains bearish – down 29.3% year to date and a 35.5% in the past year.

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A Bearish Storm Brewing

Technicals paint a challenging picture for RIOT stock. RIOT stock sits below its five-day, 20-day and 50-day exponential moving averages, reinforcing a strongly bearish trend despite some slight buying pressure.

The eight-day simple moving average at $7.80 and 20-day SMA at $7.84 both signal further weakness, while the 50-day SMA at $9.86 underscores the stock's steep decline. Even the 200-day SMA at $9.94 remains well above RIOT stock’s current price of $7.04, leaving little room for optimism in the near term.

The Moving Average Convergence Divergence (MACD) indicator at a negative 0.64 also suggests bearish momentum, and with a Relative Strength Index (RSI) of 35.04, RIOT stock is creeping toward oversold territory but isn't quite there yet.

Can RIOT Stock Reverse Course?

While Tuesday's bounce may have offered some relief for bulls, the broader trend remains bearish unless Riot stock can decisively break its downward trajectory. The death cross is a widely followed technical indicator that often signals prolonged weakness, and with Bitcoin's volatility adding another layer of uncertainty, RIOT stock investors may be in for a rough ride.

For now, the trend is not Riot's friend. The question is whether this bounce is the start of a reversal – or just a brief respite before more pain ahead.

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