Coinbase (COIN) stock analysis: Is a rebound likely?

Coinbase (COIN) share price could drop below $300

Coinbase, Inc. logo of an American cryptocurrency exchange is seen on a mobile phone screen in front of the Nasdaq Stock Market logo.                                 
Photo: Shutterstock
                                

The mobile-wallet company BRD Wallet announced on 24 November that its team members will join Coinbase “to bring the power of decentralisation to even more users around the globe”. Coinbase Wallet tweeted on the acquisition that the BRD team will “help accelerate web3 adoption.”

In another announcement, global sportswear brand Adidas tweeted that it had partnered with Coinbase, but did not give any further details, barring an ambiguous “probably nothing” to keep the investors guessing.

On the negative front, Coinbase Support tweeted on 24 November that the Coinbase brokerage and its trading platform, Coinbase pro, were down because of connectivity issues. The issue was resolved in less than two hours, according to the exchange, but several users were irked with the downtime as a similar issue had cropped up about a month ago.

Mizuho Securities USA recently told its clients in a note that owning bitcoin (BTC) was better than buying shares of Coinbase in view of increasing competition and the “commoditisation of cryptocurrency exchanges”, as Coindesk reported. 

Mizuho analyst Dan Dolev gave a neutral recommendation on Coinbase, with a target of $300.

However, according to Yahoo finance, the average analyst price target for Coinbase is $408.70. 

Could Coinbase stock go up from current levels and hit the analyst target objective? What do the charts project? Read our COIN stock analysis to find out.

Coinbase share-price technical analysis: weekly chart

Coinbase share-price technical analysis: weekly chart
Coinbase share-price technical analysis: weekly chart – Credit: Currency.com

Coinbase’s stock price has been in a correction for the past two weeks after hitting a local high of $368.76. This suggests traders may be booking profits after the strong rally that started from $224.32 in early October.

The bulls are likely to defend the zone between the breakout level of $293.66 and the 20-week exponential moving average (EMA).

If the price rebounds off this zone, it will suggest that sentiment remains positive and traders are buying on dips. The bulls will then make one more attempt to resume the uptrend.

A break and close above $368.76 could open the doors for a possible retest of the all-time high at $428.89.

Contrary to this assumption, if the stock continues lower and breaks below the 20-week EMA, it will indicate that traders may be rushing to the exit. The pair could then drop to the strong support at $224.

Coinbase share-price technical analysis: daily chart

Coinbase technical analysis daily chart
Coinbase share-price technical analysis: daily chart – Credit: Currency.com

Coinbase’s stock price turned down sharply from $368.76 on 9 November and dropped to the 20-day EMA on 10 November. The subsequent rebound fizzled out at $354.47 on 15 November and the stock plunged below the 20-day EMA on 18 November.

The 20-day EMA has started to turn down gradually and the relative strength index (RSI) is just below the midpoint, indicating that bears are trying to gain the upper hand.

A break and close below the 50-day simple moving average (SMA) could signal the start of a deeper correction.

Conversely, if the price rebounds off the current level or the 50-day SMA, the bulls will try to drive and sustain the stock above the downtrend line. If they succeed, it will indicate that the correction may be over. The stock could then attempt a rally to $350 and later to $368.76.

Coinbase: stock buy or sell at these levels

Coinbase’s share price analysis shows that the stock is in a corrective phase. There is strong support at $293.66. If the price rebounds off this level, the stock could attempt to resume the uptrend.

On the other hand, a break below this support may indicate the start of a deeper correction.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

Coinbase Global, Inc. Class A Common Stock
Daily change
302.42
Low: 297.73
High: 305.08

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image