Canaan Inc. (
CAN), a key player in Bitcoin mining hardware, has endured a steep downtrend throughout 2025, sliding from peaks near 3.50 down to recent troughs around 0.80 amid crypto sector headwinds. However, the chart is flashing signs of exhaustion and a potential bullish reversal, with price stabilizing and momentum indicators turning positive.
Technical Analysis:
Price Action and Structure: After a series of lower highs and lows, the stock has bounced from support near 0.80, with the latest close at 0.8503 showing buyer interest. Price is pushing against a descending trendline (red down-arrows) and exiting a consolidation cloud (likely Ichimoku Kumo, shaded purple), which could transition from resistance to support on a sustained breakout.
Key Levels:
Support: Immediate floor at recent lows (~0.80), with deeper support at S1 (0.4603) if selling resumes.
Resistances: Layered overhead including R1 (1.0666), R2 (1.0830), R3 (1.2409), R4 (1.3969), and R5 (1.5669). Targeting the higher end near 1.55 aligns with extension toward R5 for a stronger move.
Indicators:
The lower panel oscillator (resembling MACD with red/green bars and lines in red, green, yellow) displays a bullish crossover: green line above red, histogram shifting from red (bearish) to blue/green (bullish). This suggests momentum divergence and potential for upside continuation.
Volume spikes on recent upticks reinforce buying pressure.
Trade Setup:
Entry: Enter long at current levels around 0.85, or wait for a close above cloud resistance (~0.90) for confirmation.
Target: Take profit at 1.55 (near R5 confluence), offering approximately 82% upside from entry based on chart projections and historical patterns.
Stop Loss: Place below key support at 0.57 to account for volatility, providing room for minor pullbacks while protecting capital.
Risk/Reward Ratio: About 2.5:1 (reward of 0.70 vs. risk of 0.28 per share), a solid setup for the potential reversal in this high-volatility stock. Size positions to risk 1-2% of total capital max.
Invalidation: Exit if price breaks decisively below 0.57, signaling downtrend resumption toward lower supports.
CAN), a key player in Bitcoin mining hardware, has endured a steep downtrend throughout 2025, sliding from peaks near 3.50 down to recent troughs around 0.80 amid crypto sector headwinds. However, the chart is flashing signs of exhaustion and a potential bullish reversal, with price stabilizing and momentum indicators turning positive.Technical Analysis:
Price Action and Structure: After a series of lower highs and lows, the stock has bounced from support near 0.80, with the latest close at 0.8503 showing buyer interest. Price is pushing against a descending trendline (red down-arrows) and exiting a consolidation cloud (likely Ichimoku Kumo, shaded purple), which could transition from resistance to support on a sustained breakout.
Key Levels:
Support: Immediate floor at recent lows (~0.80), with deeper support at S1 (0.4603) if selling resumes.
Resistances: Layered overhead including R1 (1.0666), R2 (1.0830), R3 (1.2409), R4 (1.3969), and R5 (1.5669). Targeting the higher end near 1.55 aligns with extension toward R5 for a stronger move.
Indicators:
The lower panel oscillator (resembling MACD with red/green bars and lines in red, green, yellow) displays a bullish crossover: green line above red, histogram shifting from red (bearish) to blue/green (bullish). This suggests momentum divergence and potential for upside continuation.
Volume spikes on recent upticks reinforce buying pressure.
Trade Setup:
Entry: Enter long at current levels around 0.85, or wait for a close above cloud resistance (~0.90) for confirmation.
Target: Take profit at 1.55 (near R5 confluence), offering approximately 82% upside from entry based on chart projections and historical patterns.
Stop Loss: Place below key support at 0.57 to account for volatility, providing room for minor pullbacks while protecting capital.
Risk/Reward Ratio: About 2.5:1 (reward of 0.70 vs. risk of 0.28 per share), a solid setup for the potential reversal in this high-volatility stock. Size positions to risk 1-2% of total capital max.
Invalidation: Exit if price breaks decisively below 0.57, signaling downtrend resumption toward lower supports.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
If you found my trades helpful, please consider sending a tip in BTC to: bc1qr35mrh82hykpy9v6znpsyuew85x84ezjyrrf6m
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.