IREN Shares Take a Breather Following Spectacular Rally

IREN AU0000185993

The shares of IREN, formerly known as Iris Energy, are experiencing a pullback in early European trading on Tuesday. This comes after a stunning surge of more than 25 percent last week, prompting investors to take a pause. The key question for market participants is whether this represents a healthy technical correction or a shift in sentiment driven by broader market nervousness.

On the Tradegate platform, the stock is currently trading near €46.60, marking a decline of approximately 2.0 percent. This points to a weak opening for the U.S. session following yesterday's market holiday for Martin Luther King Jr. Day. The current retreat stands in contrast to the strong Nasdaq closing price from Friday, when the equity concluded trading at $57.82.

Two primary elements are contributing to the downward pressure. First, traders are capitalizing on profits from the recent overheated technical situation. Indicators such as the Relative Strength Index (RSI) had previously signaled overbought conditions. Second, a cautious overall market environment is dampening investor appetite. Concerns regarding fresh geopolitical tensions and potential U.S. government tariff threats are leading to a broad reduction of risk in portfolios. Volatile technology stocks like IREN are feeling this effect particularly acutely.

Long-Term Growth Narrative Remains Firmly in Place

Despite today's setback, the fundamental drivers behind the recent powerful rally remain fully intact. The investment bank H.C. Wainwright recently elevated its price target for IREN to $80.00 and reiterated a "Buy" rating. In a separate analysis, Bernstein identified the company as a top artificial intelligence selection for 2026.

The core catalyst for the stock is IREN's strategic pivot from a pure-play Bitcoin miner to a provider of high-performance computing data centers tailored for AI workloads. This strategic direction has received significant validation through a massive capacity agreement with Microsoft, valued at $9.7 billion.

Key Technical Levels to Monitor

The gap between Friday's closing price and the current European indicative price suggests the potential for heightened volatility at the U.S. market open. On the upside, the recent peak around $58.75 now forms the initial resistance level.

Attention turns to support levels on any further pullback. A deeper correction could test the breakout zone near the $50.00 mark. Maintaining this support area is crucial for preserving the bullish underlying chart structure. In the near term, the broader market correction is dictating price action, while the long-term growth story tied to the AI sector continues unchanged.