The Coinbase stock price has experienced an incredible surge over the past five weeks, displaying parabolic growth in the daily time chart. Starting from June 6th low of $46.3, the coin’s value has skyrocketed to its current price of $114, representing an astounding growth of 142%. This bullish rally can be attributed to the development of a bullish reversal pattern called double bottom and the ripple effect caused by the recent surge in the 5th largest cryptocurrency-XRP. Can buyers continue this rally longer or is it time for sellers to enter?
Also Read: Coinbase Stock Defies Lawsuit And Crypto Winter; $COIN Price Shoots By 16%
Coinbase Price Daily Chart
- Profit booking from short-term investors could trigger a minor correction in the COIN price
- The potential pullback could witness strong support at the $100 psychological mark
- A potential golden crossover between the 50-and-200-day EMAs could bolster the buying pressure
Source-Tradingview
Amid the recent rally, the Coinbase stock price reclaimed some crucial chart levels such as $71.8, $85.5, and $98.7. The bull rally back by increased volume indicates buyers’ conviction to lead sustained growth.
However, it seems, the COIN price has already witnessed a significant rally in a short period and any further growth is likely until some new positive news has spread. By the press time, the stock price trades at the $105 mark, and the long-rejection wicks attached to the daily reflect the overhead supply pressure.
This rejection indicates this asset may witness a post-rally correction to replenish the exhausted bullish. At such time, the reclaimed level mentioned above could act as suitable support to restart a bullish recovery.
How Far Can the COIN Price Correct?
With a high selling pressure present at $114, the Coinbase stock price is poised for a minor retracement. As per the Fibonacci retracement level, the $100-98.7 support aligned with the 23.6% FIB level stands on solid footing to sustain higher prices. In case of a longer correction, the stockholders can expect demand pressure at $88.45(38.2% FIB), followed by $80(50% FIB).
- Bollinger band: The COIN price challenging the upper ceiling of the Bollinger band indicator, suggests the bullish momentum is aggressive.
- Relative Strength Index: The daily RSI slope entering the overbought region indicates the requirement of a minor correction.