Coinbase Stock Price Prediction: Amid broader market trends, the S&P 500 index saw a 0.37% drop Wednesday morning ahead of the Federal Reserve’s policy meeting minutes, accompanied by similar declines in the Dow Jones Industrial Average (-0.74%) and Nasdaq Composite (-0.95%). In this context, the Coinbase (COIN) share price continued its correction phase, currently trading at $153. Yet this movement towards crucial support suggests a potential for buyer intervention, possibly signaling a turnaround and resumption of the stock’s recovery.
Can $140 Support Trigger a New Recovery
- The current correction could assist the Coinbase Stock price to revive the exhausted bullish momentum.
- Accumulation of the technical level at $140 creates a strong demand zone
- The positive alignment within daily EMAs(20, 50, 100, and 200) reflects the overall trend remains bullish
Coinbase Stock Price Prediction| TradingView Chart
The recent trajectory of the Coinbase stock price reflects a significant market recovery, beginning with a sharp rebound in late October from a local support level of $70.4. This upturn propelled the stock by 165% over two months, peaking at $187.39. However, a recent pullback from this peak led to an 18.2% drop in the asset’s value over the last three trading days.
Analyzing the daily timeframe chart reveals that this correction may approach the ascending trendline of a rising channel pattern, potentially serving as a support level. Notably, this trendline support around the $140 mark aligns with the 38.2% Fibonacci retracement level, forming a significant convergence point that could attract buyers. Such a retracement is generally seen as beneficial for a sustained bull run, providing investors a momentary pause to gather strength.
If the stock maintains its position above this key support area, it could enable buyers to regain control and continue the recovery trend. In an optimistic scenario, this post-correction phase might propel the Coinbase share price towards a target of $207.5, with a subsequent aim of reaching $282.
Is Coinbase Stock Price at Risk of Further Correction
While the overall trend for Coinbase’s share price remains bullish, a sustained decline below the trendline could signal the onset of a more substantial correction. In such a case, the share price might decline by 11.8% from its current trading level of $149, potentially retesting support levels at $128 and then $114, which correspond to the 50% and 61.8% Fibonacci retracement levels, respectively.
- Average Directional Index: The daily ADX slope at 53% suggests the buyers are likely exhausted from the recent rally.
- Exponential moving average: the rising 50-EMA slope wavering close to the $140 level could offer additional support to market buyers.
Related Article:
- Top Coinbase Executives Offload $COIN Stock Amid Bitcoin ETF Hype
- Crypto Market Selloff: $600 Mln Liquidated BTC, ETH, SOL, XRP, ADA Price Free Fall, Here’s Why
- Bitcoin Price Dumps To $40k As Doubts Linger Over Spot ETF Approval, Can BTC Weather the Storm?
