Coinbase (NASDAQ: COIN) stock price is looking very bullish after a recent breakout. There has been a lot of positive news for the company, which is fueling the ongoing rally. Technical analysis suggests there is still a potential 30% upside for the stock of the crypto giant.
Tech stocks are keeping their upward momentum this week. Consequently, the NASDAQ 100 index has surged to fresh 12-month highs. Coinbase shares are also showing a very positive price action and are up 9.8% this week. However, on Wednesday, the stock had a 3.59% pullback.
The past few months have been a roller coaster ride for Coinbase. In May 2023, the Securities and Exchange Commission of the US filed a lawsuit against the exchange for breaching securities laws. The company’s shares plunged immediately after the negative news, and the stock fell below $50.
In June 2023, Coinbase partnered with BlackRock to provide institutional investors with access to crypto. In addition, BlackRock also named Coinbase as its surveillance-sharing partner as the financial giant refiled its spot BTF application to SEC. This development caused a massive surge in Coinbase stock price, which is now trading at its highest level since August 2022.
It is quite evident from the following NASDAQ: COIN chart that the stock has been trading within $40-$115 range since May 2022. The bottom and top of this trading range are acting as strong support and resistance, respectively.
The recent breakout from the diagonal trendline, as shown in the chart below, has made Coinbase stock price prediction bullish on the lower timeframe. If the BTC price breaks above $31,000, I expect the shares to retest a range high of $115 in the coming weeks.
I’ll keep posting my updated Rivian analysis and my personal trade setups on Twitter, where you are welcome to follow me.
This post was last modified on Jul 13, 2023, 10:34 BST 10:34