Applied Digital Corp (NASDAQ:APLD) shares are trading lower on Tuesday as crypto‑linked stocks slide alongside a sharp pullback in Bitcoin (CRYPTO: BTC).
Tariff Threats Are Shaking Up Crypto Markets
Cryptocurrencies tumbled after risk assets weakened and investors shifted toward havens, following President Donald Trump's proposal for new tariffs on eight European countries, as reported by Bloomberg. Bitcoin dropped approximately 3.7% and fell below $90,000 on Tuesday.
Trump said over the weekend that he plans to impose a 10% tariff on goods from the targeted European nations beginning Feb. 1, with the rate rising to 25% in June unless a deal is reached for what he described as a "purchase of Greenland."
The announcement sent U.S. equity‑index futures lower this week, while traditional safe‑haven assets such as gold and silver surged to record highs. European leaders criticized the comments and signaled they may halt approval of a trade agreement finalized last year.
The renewed tariff concerns, according to Richard Galvin, co‑founder of hedge fund DACM, have stalled Bitcoin’s momentum, which had climbed to just under $98,000 on Jan. 14. With gold reaching record highs, he emphasized that the sell-off is "more a risk‑off move than anything crypto‑specific."
Exploring Applied Digital’s Momentum
Applied Digital is currently positioned in a strong technical setup, trading above key moving averages. This indicates bullish momentum, suggesting that traders might look for upward movement in the near term.
The RSI is currently neutral, meaning it isn’t signaling overbought or oversold conditions. This suggests that there could be room for further price action without immediate concerns of a reversal.
MACD is above its signal line, indicating bullish momentum for Applied Digital stock. This positioning can be a positive sign for traders, as it suggests that the current trend may continue.
Traders should keep an eye on the resistance level around $40.00, as a breakout above this could signal a continuation of the upward trend. Conversely, if the stock approaches this level and fails to break through, it might indicate a potential reversal or consolidation.
Applied Digital has shown impressive performance over the past 12 months, with a return of 289.16%. This significant gain reflects a strong longer-term trend, suggesting that the stock has been in a solid uptrend.
Currently, the stock is trading at 90.2% of its 52-week range, indicating it is near its highs. This positioning suggests that traders should be cautious of potential pullbacks, as the stock is approaching resistance levels.
APLD Price Action: Applied Digital shares were down 1.36% at $36.93 at the time of publication on Tuesday, according to Benzinga Pro.
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