Rivian stock price (NASDAQ: RIVN) has recently corrected by approximately 16% from its recent high, signaling a potential bearish trend reversal. The stock formed a double-top pattern and faced rejection at the $25.00 mark, raising concerns about the $20.00 support level. With the stock trading below both the 50-day and 200-day EMAs, negative sentiment has been triggered, inviting further decline. However, the price is nearing a crucial support level, making it a pivotal moment for investors. Will Rivian's stock hold the line, or is a further drop imminent? Let's delve deeper into the current market dynamics and technical indicators to find out.
Rivian Stock Price Analysis: Bearish Signals and Key Support Levels
Rivian stock price (NASDAQ: RIVN) is reversing and has corrected 16% from the recent swing high. It formed a double-top pattern, which is a classic sign of a bearish trend reversal. The stock faced rejection from the $25.00 level and began to decline, forming lower lows. The bears seem more active compared to the bulls, putting the $20.00 support level at risk. Rivian stock price has dropped below the 50-day and 200-day EMAs, showcasing a downtrend. This has triggered negative sentiment and invited further decline.
However, the price has reached a crucial support level. It will be interesting to see whether buyers can defend this support. In mid-August, Rivian Automotive stock price took support near $20.00 and showed a sharp bounce. Due to this, investors expect that a similar pattern may be repeated. In the last two months, RIVN stock price has traded with a mild bearish bias. It has corrected significantly, so major consolidation or a short-term bounce is needed. Rivian stock price closed the previous session at $21.13 with an intraday rise of 2.62%. The market capitalization stands at $20.03 billion.
Will Rivian Stock Price Breakdown $20.00 Support?
Rivian stock price (NASDAQ: RIVN) is trading with bearish cues, and no reliable signs of recovery are visible. However, until the price breaks down to $20.00, it may be early to say that more downfall is coming. As long as RIVN stock price sustains above $20.00, the probability of a bounce back will remain high. On the higher side, $25.00 will act as an immediate hurdle for the bulls. If the price takes a U-turn and breaks out of $25.00, then a sharp rise toward $28.00 is possible. On the other hand, if Rivian stock price drops below $20.00, then a 10% to 15% more downside will open.
RIVN Stock Fell 14% in the Previous Week
RIVN stock fell 14% last week and formed a giant bearish candle. However, in the current week, sellers did not give the follow-through momentum. This indicates that selling pressure is getting absorbed near $20.00 and buyers are available at lower levels. The MACD generated a negative crossover, but the curve is sloping sideways, which denotes that the price may enter a consolidation phase. The RSI at 40 denotes weakness, but if Rivian stock price recovers, then RSI will also reverse upward.
Technical Analysis and Future Projections
Resistance Levels
- $24.00: This level has acted as a significant resistance in the past and will be the first hurdle for any upward movement.
- $25.00: A critical resistance level that has recently rejected the stock price. Breaking this level could lead to a sharp rise.
Support Levels
- $19.58: A minor support level that could provide some buying interest.
- $18.00: A more substantial support level that could act as a strong base if the stock price continues to decline.
Market Sentiment and Investor Outlook
The market sentiment around Rivian stock is currently bearish, primarily due to the stock trading below its 50-day and 200-day EMAs. However, the presence of buyers near the $20.00 support level suggests that there is still some optimism among investors. If the stock can hold this support, it could lead to a short-term bounce or even a reversal.
Factors Influencing Rivian Stock Price
- Market Trends: The overall market trend will play a significant role in determining the future direction of Rivian stock. A bullish market could provide the necessary momentum for a recovery.
- Company Performance: Rivian's quarterly earnings and other financial metrics will be closely watched by investors. Positive results could trigger a rally, while disappointing numbers could lead to further decline.
- Industry News: Any news related to the electric vehicle (EV) industry, such as new regulations, technological advancements, or competitor performance, could impact Rivian's stock price.
Conclusion
Rivian stock price (NASDAQ: RIVN) is in a correction phase, and buyers are trying to defend the support. The analysis suggests that RIVN stock price is near a crucial support level, and the possibility of an upside reversal remains high. However, investors should remain cautious and closely monitor the stock's performance around the $20.00 support level. A breakdown below this level could lead to further decline, while a successful defense could trigger a short-term bounce or even a reversal.
Technical Levels
- Resistance levels: $24.00 and $25.00
- Support levels: $19.58 and $18.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Final Thoughts
Rivian's stock price is at a critical juncture, and the coming days will be crucial in determining its future direction. Investors should keep a close eye on the $20.00 support level and be prepared for potential volatility. Whether the stock bounces back or continues to decline, staying informed and making data-driven decisions will be key to navigating this challenging market environment.
