CleanSpark, Inc. (Nasdaq: CLSK) saw its stock price fall sharply during morning trading on Tuesday. As of 10:59 AM EDT, the stock was trading at 0.91, or 7.43%, for the day.
The trading session began with the stock opening at $11.96, already below the previous day’s close of $12.25. However, the most dramatic move occurred shortly after the market opened, when a wave of selling pressure pushed the price down significantly. The day’s trading range has been between $11.19 and $12.06, indicating the stock is currently trading near its intraday low.
The sell-off is accompanied by heavy trading volume. The volume at the time of the screenshot was over 13.6 million shares, which is a substantial portion of its average daily volume of approximately 27.1 million shares. This high volume suggests strong conviction from sellers.
Should You Buy or Sell CLSK Stock Today?
When considering whether to buy or sell, traders and investors are currently faced with conflicting signals.
The Bearish Case: The strong downward momentum on high volume points to significant selling pressure. The stock’s high Beta of 4.24 indicates it is substantially more volatile than the overall market, making it a high-risk asset in turbulent times. The sharp price rejection from the $12 level could signal further downside in the short term for technical traders.
The Bullish Case: For long-term investors, this sharp dip could be viewed as a potential buying opportunity. Despite the current downturn, the 1-year analyst target estimate for CLSK remains optimistic at $19.10. Investors who believe in the long-term prospects of the company and the broader cryptocurrency mining sector might see the current price as an attractive entry point, especially as it is well below its 52-week high of $20.49.
Our Opinion
CleanSpark (CLSK) is currently experiencing a period of intense selling pressure, making it a highly speculative play for short-term traders. The stock’s immediate direction will likely be dictated by whether it can find a support level above its intraday low of $11.19.
Given its high volatility and close correlation with the cryptocurrency markets, any investment in CLSK carries significant risk. The negative EPS of -1.11 highlights that the company is not currently profitable on a trailing-twelve-month basis. Investors should conduct their own thorough research, consider their personal risk tolerance, and monitor broader market trends, particularly the price of Bitcoin, before making any investment decisions. Caution is advised.
