IREN stock is under pressure as technicals point to a rebound
IREN stock price has slumped into a bear market despite the ongoing demand for artificial intelligence (AI) computing. It was trading at $35.7, down sharply from its all-time high.
IREN stock has plunged as large orders have remained elusive
IREN, a Bitcoin mining company that is transitioning into a large provider of AI data center services, has dropped sharply this year, a drop that has erased billions of dollars in value.
A major reason for this is that the company has not announced a major deal this year. Its last major deal was announced in November last year when it unveiled its partnership with Microsoft. The deal was worth over $9.7 billion.
Since then, other large companies have received large orders from some of the biggest hyperscalers. For example, Nebius reached a $27 billion deal with Meta Platforms in March.
Similarly, CoreWeave reached a similar deal with Meta Platforms worth $14.2 billion, while Google reached a major deal with TeraWulf.
The industry has also become highly competitive, with other companies like Bitfarms, Riot Platforms, and MARA Holdings entering the industry. This is one of the main reasons why its short interest has jumped to 16%. It also explains why other similar stocks have retreated in the past few months.
At the same time, the industry has become highly capital-intensive, with companies spending billions of dollars in buying GPUs and leasing spaces.
In a recent statement, the company entered a deal to buy over 50,000 GPUs from NVIDIA, bringing its total fleet to 150,000. It expects that these GPUs will give it a revenue run rate of over $3.7 billion at the end of the year.
The company is raising this capital from customer prepayments, convertible notes, GPU financing. At the same time, IREN established an at-the-market (ATM)equity program worth about $6 billion. An ATM allows a company to raise cash by selling shares, which, in turn, dilutes existing investors.
The recent financial results revealed that IREN’s business made $184.7 million in Q2’26, down from $240 million, as the company pivoted from Bitcoin mining to AI data centers.
Analysts believe that the company’s revenue growth will continue in the near term, helped by the Microsoft order. The estimate is that IREN will make $1.01 billion in revenue this year, up by 97% YoY. It will then make $2.95 billion in the following year.
IREN stock price prediction: Technical analysis
The daily chart shows that the IREN stock price has crashed in the past few months, moving from a high of $76.50 in November last year to the current $35
On the positive side, it has formed a large double-bottom pattern at $32.90 and a neckline at $63.75, its highest point on January 28. A double-bottom is one of the most common bullish reversal signs in technical analysis.
Therefore, there is a possibility that the stock will rebound in the coming weeks or months, potentially to the psychological level at $46, its highest point on February 25.
On the flip side, a drop below the double-bottom point at $32 will invalidate the bullish outlook and point to more downside, potentially to $20, the 78.6% Fibonacci Retracement level, which is about 42% below the current level.
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