NY, USA - FEBRUARY 29, 2020: Homepage of coinbase website on the display of PC, url - coinbase.com.
Coinbase (NASDAQ: COIN) stock price has shown an impressive recovery in the past few weeks. However, the recent headwinds have once again triggered a sell-off in the shares of the top US crypto exchange. Let’s analyze the bullish and bearish scenarios for the stock in this article.
On Tuesday, Coinbase shares tanked 4.52% as the US stocks experienced a negative sentiment. The shares closed the day at $94.15, which was 17% below its July 2023 high. The benchmark indices, S&P 500 and Nasdaq 100, also had a pullback.
In the pre-market trading session on Wednesday, NASDAQ: COIN slid 2.27%. At press time, the shares were changing hands at $92.15. The ongoing pullback in the shares of one of the biggest exchanges could be attributed to the recent BALD rug pull.
The malicious event occurred when the creator of the BALD coin suddenly pulled out the liquidity resulting in a loss of $68 million. All the transactions occurred on Coinbase’s newly launched L2, known as Base. Consequently, Coinbase stock price slid on Tuesday as the company was already facing headwinds from SEC’s lawsuit against it.
In my last analysis of COIN, I predicted a retest of the $115 level. At that time, many analysts laughed at me as the stock was trading at only $85. However, just after a few days of that analysis, the stock soared to $114.43, which was also its yearly peak. I accurately forecasted this move just by pure technical analysis.
Coinbase stock price prediction is still looking bullish to me. There can be another retest of the $115 level if BTC breaks above $30,000 in the coming days. The invalidation of this move will be a breakdown below the $69 level, which is the bottom of the current trading range.
I’ll keep posting my updated Coinbase analysis along with my personal trade setups on Twitter, where you are welcome to follow me.
This post was last modified on Aug 02, 2023, 11:28 BST 11:28