Coinbase Stock Price Prediction: End-Of-Correction Pattern Hints Major Reversal Above $250

Coinbase Stock Price Prediction: Over the past three weeks, Coinbase stock (COIN) has been trading sideways, making efforts to remain above the $200 mark. This psychological support level has led to a sideways price movement, helping to avoid further corrections. However, the ongoing consolidation indicates a lack of clear momentum from either buyers or sellers to drive the asset’s direction. Could the recently released earnings report that exceeded market expectations provide the necessary boost to lift COIN out of its current state of uncertainty?

Also Read: What Coinbase’s $1.58 Billion Revenue Means for Crypto Assets

Coinbase’s Earnings Surpass Expectations, Stock Eyes Return to $280

The near-term trend in Coinbase stock price is bearish and can be followed through the formation of a falling wedge pattern. The two converging trendlines led the COIN price from $283.5 to $198 low, resulting in a loss of 30%.

However, the Stock price witnessed a renewed recovery at the combined support of $200 and 100-day EMA, resulting in an immediate reversal to $224.

In the recent first-quarter earnings report, Coinbase revealed a better-than-expected revenue, reporting a net income of $1.2 billion, which included substantial gains of $737 million from the pretax mark-to-market valuation of crypto assets.

However, CNBC highlighted that during the same period, multiple insiders at Coinbase executed collective sales of company shares amounting to $383 million. 

This substantial insider selling could influence investor sentiment as it may be perceived as a lack of confidence by those with intimate knowledge of the company’s operations, despite the positive earnings report.

If the Coinbase Stock maintains its bullish momentum, the price is expected to challenge the wedge pattern’s overhead trendline around $235. A successful breakout from this resistance will accelerate the market buyers’ pressure and signal the continuation of the recovery trend.

The post-breakout rally could drive the COIN price back $264 within two to three weeks, as momentum traders are often fast-moving, followed by a breakout attempt from $283.

Technical Indicator

• Exponential Moving Average: The COIN stock price above 100-and-200-day EMAs indicates the broader trend remains bullish.
• Average Directional Index: The falling ADX slope projects the buyers to recuperate the exhausted bullish momentum before the next jump.

The post Coinbase Stock Price Prediction: End-Of-Correction Pattern Hints Major Reversal Above $250 appeared first on CoinGape.