Is Marathon Digital sell-off overblown amid the decline in crypto prices?

On Monday, Marathon Digital Holdings Inc. (NASDAQ:MARA) shares surged more than 4% after D.A. Davidson said crypto mining stocks sell-off might be overblown.

Analysts Christopher Brendler said although the 2-week pullback could be justified by the recent decline in cryptocurrency prices, crypto mining companies’ fundamentals remain fantastic.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Marathon Digital’s surge, on Monday, was driven by a rebound in the price of bitcoin, which recovered from last week’s declines to trade above $58,600.

Should you bet on MARA’s explosive growth?

From an investment perspective, Marathon Digital shares trade at an exciting forward P/E ratio of 11.64, making the stock a compelling option for value investors.

In addition, analysts expect its earnings per share to increase by more than 75% this year before rising by a whopping 349% next year. They also forecast a long-term annual growth rate of about 50% over the next five years.

Therefore, growth investors could be looking to swoop in, given the company’s cheap valuation versus growth prospects.

Technically, Marathon Digital shares seem to be trading within a descending channel formation in the intraday chart. However, the stock has recently bounced back to avoid falling to oversold conditions.

Therefore, with the stock still far from reaching overbought conditions, investors could target extended rebounds at about $55.41, or higher at $60.75. 

On the other hand, if the trendline resistance triggers a pullback, MARA could find support at about $44.73, or lower at $39.40.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

1. Etoro, trusted by over 13m users worldwide. Register here >
2. Skilling, simple, easy to use and regulated. Register here >