Cipher Mining Inc. (CIFR) had a rough Monday, sliding alongside the broader selloff in crypto-linked stocks as Bitcoin's pullback continued to rattle investor nerves.
What's Behind the Drop?
The immediate culprit is Bitcoin (BTC), which slipped below $86,000 as traders pulled back ahead of key macro events. The cryptocurrency has been in consolidation mode after its blistering 80% post-election surge in 2024 that briefly pushed prices into the $120,000 to $125,000 range. That rally feels like ancient history now.
Bitcoin remains trapped under a falling trendline that's been capping prices since October. Every time the cryptocurrency tries to break out, it gets smacked back down at that level, leaving the overall setup in what traders call a "corrective posture." Until Bitcoin can reclaim and hold above that trendline, the pressure stays on.
For Cipher Mining, which operates industrial-scale data centers for bitcoin mining and high-performance computing infrastructure, that Bitcoin weakness translates directly into stock price pain. But there's more to the story. The stock appears caught up in a broader pullback among momentum names as investors continue taking profits and reassessing valuations around AI infrastructure plays.
A Vote of Confidence
Not everyone is bailing out. Despite Monday's selling pressure, Canaccord Genuity analyst Joseph Vafi reiterated his Buy rating on Cipher Mining with a $27 price target. That suggests he sees value in the company's longer-term fundamentals, even as near-term volatility makes things uncomfortable.
The Technical Picture
The charts aren't pretty right now. The stock sits 14.6% below its 20-day simple moving average and 19% under its 50-day average, both signs of near-term weakness. The RSI at 46.37 is sitting in neutral territory, meaning neither buyers nor sellers have taken control, while the MACD trending below its signal line reinforces the bearish tone.
Support is hanging around $13, with resistance near $17.10. If support holds, we could see a rebound. But if it breaks, the door opens to further declines. On the flip side, a decisive move above resistance might signal a shift back toward bullish momentum.
Here's the silver lining: despite recent volatility, CIFR has delivered an impressive 101% gain over the past 12 months. That's the kind of longer-term performance that keeps believers interested, even when the short-term action gets choppy.
CIFR Price Action: Cipher Mining shares were down 10.67% at $15.24 at the time of publication on Monday.