What Happened
IREN (Iris Energy) shares fell sharply on Monday — dropping approximately 8.5% to around $9.20 — after the company announced it would take on additional debt to fund its newly revealed partnership with Nvidia. The selloff came as investors pushed back on the steep capital cost of scaling AI infrastructure, even as the Nvidia tie-up was seen as a strategic positive longer term.
Key Levels
- Support 1: $9.00 — a key psychological round-number floor and recent intraday low
- Support 2: $8.40 — the August consolidation base and prior breakout level
- Resistance 1: $10.00 — the breakdown point from Friday’s close and round-number ceiling
- Resistance 2: $11.20 — the 50-day moving average and the level IREN needs to reclaim to restore bullish momentum
Technical Picture
IREN was trading in a short-term uptrend before Monday’s gap down broke the structure. The stock is now sitting below its 20-day and 50-day moving averages, which is a bearish signal in the short term. RSI has dropped to approximately 38, approaching oversold territory (below 30) but not yet triggering a classic bounce signal. Volume on the selloff was above average, suggesting institutional selling rather than panic from retail traders alone.
What Traders Are Watching
- A close back above $10.00 would suggest the dip buyers have stepped in and the gap is being filled — a potential long entry trigger
- A break below $9.00 on high volume would open the door to the $8.40 support zone and signal the selloff has further to run
- Any updated guidance on the debt terms or drawdown schedule from IREN management could act as a near-term catalyst in either direction
Bias
Neutral to cautiously bearish in the short term. While the Nvidia partnership has genuine long-term merit, the market is clearly uncomfortable with the debt-funded growth model right now. Until IREN reclaims $10.00, the path of least resistance is sideways to lower. Traders should wait for confirmation before chasing a bounce.
Source: Business Insider — IREN stock pulls back as investors assess the steep price of the AI buildout