Reddit Inc. RDDT has been riding a bullish wave, surging 338.46% in the past year, 33.30% year-to-date, and 23.22% over the past month.
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RDDT stock is soaring above its five, 20, 50, and 200-day simple moving averages (SMAs), signaling strong buying pressure. Yet, just as RDDT stock gains traction ahead of its Q4 earnings in six days, it finds itself in a situation with none other than Tesla Inc‘s CEO Elon Musk.
RDDT Stock On A Tear, But Overbought Warnings Loom
Reddit’s technicals remain firmly bullish. The stock sits at $224.00, well above its eight-day SMA of $207.25, 20-day SMA of $188.24 and 50-day SMA of $172.38—a clear bullish signal.
Even its 200-day SMA at $94.89 is miles behind, cementing its long-term strength. The MACD indicator at 13.60 also points to continued momentum.
But there’s a catch—Reddit’s Relative Strength Index (RSI) is flashing 77.88, deep in overbought territory. That could mean a cooldown is coming, especially with potential headline risks on the horizon.
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Musk Vs. Reddit: A Digital Showdown
As RDDT stock soars, Reddit finds itself clashing with one of the internet’s most influential voices—Elon Musk. The billionaire sparked a crackdown on Reddit communities after accusing users of making violent threats against his employees, The Verge reported.
In response, Reddit temporarily banned r/WhitePeopleTwitter for 72 hours and permanently shut down r/IsElonDeadYet.
Musk, who has long positioned himself as a free speech advocate, posted on X, stating, ‘They have broken the law.’ Musk himself has been involved in legal battles over online speech, including a now-dismissed lawsuit against the Centre for Countering Digital Hate.
Tensions between Musk and Reddit communities have been boiling over. More than 100 subreddits recently blocked X links in protest after Musk made a controversial arm gesture at a Trump rally.
Despite the drama, RDDT stock has momentum. With earnings coming up on Feb. 12, investors will be watching closely. Can Reddit sustain its rally, or will the Musk-fueled controversy be the first crack in the armor?
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