Galaxy Digital stock has slumped sharply in recent months and is now hovering at its lowest level since April last year. It dropped to $14.68, more than 68% below its 2025 peak, erasing billions of dollars in market value. The decline may continue in the near term as crypto prices fall and AI jitters intensify.
Galaxy Digital stock technicals points to more downside
The daily chart shows that GLXY stock has come under pressure in the past few months, moving from a high of $36.11 in June to the current $14.68.
A closer look shows that the stock has dropped below the important support level of $16.67, its lowest level in February and April, respectively. The stock formed a death cross pattern, which happens when the 50-day and 200-day moving averages cross each other.
Galaxy Digital remains below the Supertrend indicator, a sign that bears are in control. Also, the Average Directional Index (ADX) has soared to 28.2, its highest level since May 18 this year. The rising ADX is a sign that the downward trend is gaining momentum. Therefore, the stock will likely continue falling, potentially to the important support level of $10.
Galaxy Digital is facing crypto and AI headwinds
GLXY faces twin headwinds, which explains its continued downward trend. One of the risks is the ongoing crypto market retreat that has affected Bitcoin and other altcoins.
The most recent results showed that its revenue dropped by 15% to $8.71 billion as the crypto winter continued. Its net loss came in at over $85 million, and this trend will likely continue as long as the crypto market is wavering.
Galaxy Digital is also falling because of the ongoing fears about the artificial intelligence industry. This is important because the company is spending millions of dollars building data centers, with CoreWeave, the embattled neocloud being its biggest client. CoreWeave, despite its $104 billion backlog, is facing substantial risks, pushing its bond yields to 15%.
The next important catalyst for Galaxy Digital will be its upcoming earnings report, which will provide more color on its business. The average estimate among analysts is that its third quarter revenue will be $12.1 billion, down by 70% from a year earlier. For the year, analysts expect its revenue will be $52.5 billion, down by 37% from last year.
Still, the options market suggests that the stock will rebound after earnings. It has a put/call ratio of 0.26, with most of the call options being concentrated at $16, up by 10% from the current level.
Another positive is that some analysts believe that the stock will rebound in the near term. Maxim Group sees the stock rising to $36, while Piper Sandler expects it to jump to $25. Citigroup and Morgan Stanley is expected to hit $28 and $43, respectively.