Coinbase Stock Price Analysis: Bullish Recovery Trend Indicates Further Rally
The ongoing recovery in Coinbase stock price has gained aggressive momentum this week, benefiting from regulatory challenges faced by its rival, Binance. As a result, the Coin share price has been rising for five consecutive days and reached a 4-month high of $114.4. However, a closer look at the daily time frame chart reveals that this recovery is part of a rising channel pattern, suggesting the asset is poised for further rally.
Coinbase Price Daily Chart
- A rising channel pattern leads the current recovery trend in COIN Stock
- The ongoing recovery trend may face strong supply at the $135 mark
- The 20 EMA could provide a significant pullback for buyers
Source: Tradingview
The Coinbase stock price has shown an impressive recovery in November, bouncing back from a psychological support level of $70. Over the past three weeks, the momentum has driven the asset price up to $115, marking a 63% increase.
An analysis of the daily time frame chart reveals that this upward trend is part of a bullish swing within a rising channel pattern that has been shaping the stock’s recovery trajectory for over a year.
This pattern, characterized by parallel trendlines, has consistently provided dynamic resistance and support for Coinbase stock. Currently, the recovery momentum suggests that the price may continue to rise approximately 15% to reach the upper trendline of the channel around $135.
However, historical trends within this pattern indicate caution; previous approaches to the upper trendline have been met with increased selling pressure and immediate reversals towards the lower trendline.
If significant overhead supply pressure occurs, the Coinbase stock price may face another correction phase starting from the $135 level.
Will COIN Price Hit $200?
The recent catalyst for Coinbase stock performance was the news of Binance CEO Changpeng Zhao’s resignation due to a guilty plea regarding U.S. anti-money laundering law violations. While this development has contributed positively to the current upward trajectory, resistance at higher levels is likely to slow down the pace of recovery. To shift into a more aggressive recovery mode, the stock would need to surpass the overhead trendline, potentially setting the stage for a surge towards the $200 mark.
- Average Directional Index: The daily ADX slope at 40 suggests that the current buying momentum may be nearing exhaustion.
- Bollinger Bands: A sharp upswing in its upper boundary Bollinger Band indicator indicates aggressive buying activity.
Hot Take: Coinbase Stock Price Shows Strong Recovery Potential Amidst Regulatory Challenges
The ongoing recovery in Coinbase stock price demonstrates its resilience and potential for further growth. While facing regulatory challenges, Coinbase has capitalized on its rival’s troubles and experienced significant upward momentum. The rising channel pattern in its daily chart signals a bullish trend, but caution should be exercised as historical trends suggest selling pressure near the upper trendline. The recent news of Binance CEO’s resignation has contributed positively, but resistance may impede rapid recovery. Nonetheless, if Coinbase manages to overcome these obstacles and surpasses key levels, such as $135 and $200, it could experience substantial gains in the future.
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