Cipher Digital (CIFR) Price Forecast: Breakout Signals Trend Continuation

Breakout Structure Signals Trend Shift

The stock of Cipher Digital, Inc. (CIFR) broke out from a large falling bullish falling wedge formation last week. Concurrently, the 100-day moving average at $16.03 was reclaimed after acting as resistance following the breakdown below it at the end of January. Cipher Digital is a Bitcoin mining company focussed on sustainable digital asset infrastructure.

It is interesting to note that the initial breakout levels as defined by the top trendline and Wednesday’s high of $15.58, aligned closely with the highest initial traded price for the stock following its IPO in 2020, from September 2021 at $15.39. That further confirmed the completion of the bearish correction and provides an additional signal of strength for bulls, setting the foundation for the developing uptrend discussed below.

Continuation Confirmation Strengthens Bullish Bias

Although the wedge breakout was confirmed by initial signals, trend structure indicates that a daily close above the recent lower swing high of $16.67 was required to further confirm the bullish trend continuation signal. That level was exceeded during Monday’s session, thereby strengthening the breakout confirmation. It further shows that buyers are in control and sets the stage for a continuation of the new upswing (next leg higher) for the long-term trend.

Support Validation Reinforces Bullish Structure

It is not only the bullish price behavior that supports a continuation higher but also the technical significance of support near the recent swing low at $11.72. The bearish correction successfully tested support near the 200-day moving average for the first time since an initial breakout back test in August. Although it was briefly undercut for several days, the recovery was swift and decisive – ultimately leading to the wedge breakout noted earlier. Notice that bullish momentum accelerated following the second low of $11.90 on April 2, which occurred near the 61.8% Fibonacci retracement zone.

Pullback Watch and Key Levels Ahead

Given the confirmed continuation breakout signal, traders will be watching the characteristics of the first pullback for potential new bullish setups. Short-term momentum remains strong, but it is becoming extended relative to the April low. Key near-term resistance is near the prior swing high at $19.70, and a recovery of that level will provide another solid bullish signal.

In alignment with the earlier discussion of reclaimed moving averages and support zones, key potential support during short-term weakness is likely to be found near the 100-day moving average near $16.03 and 50-day moving average around $15.02, reinforcing the broader bullish structure established from the wedge breakout.