IREN Shares Face Critical Test After Steep Decline

IREN AU0000185993

The stock of IREN, once a standout performer in 2025, is confronting significant pressure as the year draws to a close. Having lost nearly half its value from a recent peak, the equity is now battling to hold a key psychological threshold. With profit-taking driving the action, investors are questioning whether the Bitcoin and AI beneficiary's rally has conclusively ended or if the sharp pullback presents a buying opportunity.

Trading on the NASDAQ opened the week firmly in negative territory. The shares are currently down approximately 4%, changing hands just above the $40.30 level. The intraday weakness is particularly notable: early gains after an opening at $42.53 were quickly sold off, signaling persistent investor skepticism and bearish dominance in the near term.

This downturn extends beyond a single session's volatility and must be viewed within the context of the stock's extreme price swings. IREN reached an all-time high of $76.87 as recently as November 4, 2025. In the weeks since, its market valuation has contracted by a substantial 47%. Investors who entered positions near the peak are now facing considerable paper losses.

Despite the recent sell-off, the broader perspective remains relevant. With a year-to-date gain exceeding 250%, IREN continues to rank among 2025's strongest equities, propelled by the dual tailwinds of a robust Bitcoin bull market and exploding demand for AI data center capacity. However, short-term sentiment is currently dominated by caution, underscored by a monthly decline of roughly 18%.

Key Market Data:

• Current Price: ~$40.30 USD
• Daily Change: approx. -4.00%
• 52-Week High: $76.87 USD (Nov. 4, 2025)
• Market Capitalization: ~$13.2 billion USD

Technical Support in the Spotlight

From a chart analysis standpoint, the environment is growing tense for the $13.2 billion company. The equity is now grappling with the psychologically significant $40 support zone. A sustained break below Monday's intraday low of $39.53 could trigger further technically-driven selling. To decisively halt the immediate downward trend, buyers would need to reclaim the $42.50 level. The elevated trading volume of more than 20 million shares indicates that numerous market participants are locking in profits from the prior rally ahead of the year's end.

Market observers are now awaiting clearer signals on how the company's future earnings from AI cloud services will compare to its established Bitcoin mining operations. For the remaining trading sessions of the year, the focus rests squarely on stabilization. If bullish investors fail to defend the $40 region, the stock risks entering 2026 in a technically weakened position.