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The daily time frame chart shows the Coinbase stock price has witnessed a sharp V-top correction from the $114.4 resistance. In a month, the COIN price plunged 31.6% and is currently trading at $78.1 mark. While this retracement came after a massive rally from June to mid-July, the downfall extended a bit long which indicates weakness in bullish momentum. Will this downfall extend lower?
Also Read: Coinbase Vs SEC: Ripple CTO Shares Take on Coinbase Amicus Brief
Coinbase Stock Analysis: Key Points
- A falling wedge pattern leads to the current correction in Coinbase stock price
- A bullish breakout from the wedge could set the prices for a 45% upswing
- The 20 EMA of the 4-hour time frame chart act as resistance to ongoing retracement
Source-Tradingview
A keen look at the 4-hour time frame chart shows the downfall in Coinbase stock has shaped a falling wedge pattern. Despite the steep correction, the asset price constantly bounces off the converging trendline of the pattern, projecting its strong influence on market participants.
Therefore, until the two trendlines are intact, the prices would continue to drop at lower chart levels. By the press time, this Coinbase stock price trades at $78.71 with an intraday loss of 0.92.
The interested market participants should wait for the breakout of overhead resistance to obtain a suitable signal for trend reversal. This breakout will flip the prior resistance into potential providing buyers a solid footing for higher gain.
With sustained buying, the COIN price could rise to a potential target of $84.6, followed by $102 or $114.
Will the Correction Phase Prolong?
A V-top reversal is often marked by aggressive selling sentiment in the market. If the supply momentum persists, the Coin price may also break the lower support trendline. This breakdown will bolster the extensions of the correction trend, and tumble the asset price to $72.6
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
