Cipher Digital Inc (NASDAQ:CIFR) stock is falling Friday as stocks of AI cloud services companies trade lower amid concerns over the debt required to sustain the AI infrastructure buildout.
• Cipher Digital stock is testing key support levels. Why are CIFR shares at support?
A Gartner warning about the outlook for neocloud providers, the newer AI cloud companies, also weighs on sentiment. The warning raises concerns about the sustainability of spending on AI computing capacity, according to Benzinga Pro.
The Nasdaq is down 1.34% while the S&P 500 has shed 0.38% and technology is the weakest sector on the day — down 1.8%.
Cantor Fitzgerald maintained its Overweight rating on Cipher Digital and lowered its price forecast to $19.
AI Cloud Debt Concerns Continue
CoreWeave Inc (NASDAQ:CRWV) stock faced heavy selling this week as climbing bond yields heightened concerns about its borrowing-fueled growth. Cipher belongs to the AI cloud and data center group that investors are scanning for debt risk.
Inflation Data Adds Pressure
The Bureau of Labor Statistics reported Thursday that U.S. producer prices rose 1.3% in September from the prior month, versus a 0.5% forecast. Annual producer prices rose 6.3%, versus a 5.3% consensus. Wednesday’s consumer price report showed headline inflation at 3.7%, up from 3.4% and above the 3.6% forecast. Both reports support the case for additional Federal Reserve rate hikes.
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Technical Analysis
The longer-term trend remains firmly bearish: Cipher is trading 37.6% below its 20-day SMA ($14.93) and 48.7% below its 200-day SMA ($18.18), which tells you rallies have been failing well before they can repair the bigger picture. The death cross in September (50-day SMA below the 200-day SMA) reinforces that the dominant trend has been down for months.
Momentum is extremely stretched, with RSI at 21.78 — deep in oversold territory — often a sign that selling pressure has become crowded and bounces can happen quickly, even inside a downtrend. The key question for traders is whether any rebound can reclaim short-term trend gauges like the 20-day EMA ($13.79), because failing there would keep the "sell-the-rip" pattern intact.
Price is also sitting below the prior 52-week low zone at $9.80 with the current quote at $9.32, which is a technical red flag because broken lows can turn into overhead supply. From a longer lens, the stock is still down 50.21% over the past 12 months, and the August swing high followed by the October swing low maps a clear sequence of lower highs and lower lows.
- Key Resistance: $13.79
- Key Support: $9.80
CIFR Stock Price Activity: Cipher Digital shares were down 8.17% at $9.22 at the time of publication on Friday, according to Benzinga Pro data.
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