In the past six weeks, the Coinbase stock price has witnessed an aggressive correction phase. From the peak of $114.4, this asset lost a market value of 36.8% to reach the current low of $72.1. Such V-top reversal reflects intense supply pressure and rapid change in market sentiment. The falling COIN price has taken a temporary halt at $72.5 support, reflecting a slight hope of a bullish reversal.
Also Read: XRP Lawyer: Coinbase May Have Acquired Ripple Too?
Coinbase Stock Daily Chart: Key Points
- After a sharp downfall, the COIN stock price is expected to have a minor pullback to stabilize the bearish trend
- The stock price is witnessing high demand pressure at $74.5 support
- Under the influence of a double bottom pattern, the bullish reversal from $74.5 could set the asset price for a 13.7% rise
By the press time, the Coinbase stock price traded at $72.26 and is hovering above local support of $74.5. This horizontal level associated with a 61.8% Fibonacci retracement level creates a strong area of interest, where buyers can accumulate for a bullish reversal.
A look at the 4-hour time frame chart shows the asset price has rebounded thrice from the aforementioned in a week. If the bullish momentum persists, the buyers could trigger a minor pullback which is justifiable after an aggressive downfall, as it could assist sellers in recuperating bearish momentum.
However, a potential pullback may also form a double-bottom pattern. Under the influence of this setup, the coin price is expected to rise 6.68% and challenge the neckline resistance of $79.3.
Can COIN Stock Price Reclaim $80?
A double-bottom pattern is usually formed at the end of a downtrend, hinting at a high potential for a price reversal. The increasing accumulation at a horizontal support indicates an upswing which gains more momentum after the breakout of its neckline resistance. Therefore, if the Coin stock price breached the $79.3 barrier, the coin holders can expect a bullish recovery to $84.5.
- Relative Strength Index: Concerning the price retest of $74.5, the daily RSI slope shows an evident RSI projecting the growth in underlying bullish momentum.
- Bollinger Band: The lower band of the Bollinger Band indicator going flat could offer additional support at the $74.5 level.